25 Nov 2024

  • Hong Kong opens subscriptions tomorrow for its three-year retail infrastructure bonds, offering a guaranteed minimum rate of 3.5 percent per annum, according to The Standard. The target size of the retail infrastructure bond is HK$20bn, with each lot offered at HK$10,000 and a tenor of three years. Interest will be paid semi-annually at a rate linked to inflation in Hong Kong, subject to a minimum of 3.5%.
  • The offering may divert funds from the fluctuating stock market, said Francis Kwok Sze-chi, the vice chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators. If the return on the bond is better than a time deposit’s interest rate, investors may deploy money from the stock market to bonds, he said
  • As for comparison, Standard Chartered offers a six-month deposit for new funds at 3.1% per annum, HSBC offers a three-month at 3.3% and BOCHK has a three-month deposit at 3%.
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