The Hong Kong government’s latest offering of HK$50 billion (US$6.4 billion) in so-called Silver Bonds received a positive response as it opened for subscription on Monday, according to bank managers.
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The bonds, for buyers 60 years of age and above, proved popular as they offer guaranteed returns of 4 per cent per year while allowing investors to take part in the city’s infrastructure projects, analysts said.
HSBC, the biggest of the city’s three currency issuing banks, said the latest batch of the bonds received a very strong response on the first day of subscription.
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“With the US rate cut cycle beginning, Hong Kong interest rates are expected to soften,” said Sami Abouzahr, head of investments and wealth solutions in the wealth and personal banking unit of HSBC Hong Kong. “Quality bonds are therefore an attractive option for investors to lock in yields, in particular our senior or retiree clients with lower risk appetites who prefer stable, guaranteed returns.”
The latest tranche of the bonds enables such citizens to diversify their portfolios and secure an attractive income, he added.
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