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Hong Kong Monetary Authority (HKMA)
BusinessBanking & Finance

Hong Kong’s ‘Silver Bonds’ receive highest number of subscription applications as seniors bet on low-risk investment in uncertain economic environment

  • HSBC sees ‘record-high subscriptions’ by customers, executive says
  • Final issue size expected to be increased to upper limit of HK$55 billion; HKMA to announce final allotment results on August 16

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Senior citizens exercise in Hong Kong’s Victoria Park. Each buyer can subscribe up to a maximum of HK$1 million worth of the inflation bonds. Photo: Dickson Lee
Mia Castagnone
The eighth round of Hong Kong’s inflation-linked government debt targeted at senior savers, known as “Silver Bonds”, has attracted its highest number of applications to date, the Hong Kong Monetary Authority (HKMA) said on Wednesday.
About 326,000 subscription applications, 12 per cent higher than last year, worth around HK$72.18 billion (US$9.23 billion) – about 1.4 times the target issuance – had been received, a government spokesperson said. The government had offered HK$50 billion worth of Silver Bonds for sale to those aged 60 years and above to boost their incomes in an uncertain economic environment.

The sale closed on Wednesday but due to the enthusiastic response, it is expected that the final issue size will be increased to the upper limit of HK$55 billion. The HKMA will announce the final allotment results on August 16.

This Silver Bond offering drew a higher response than previous ones, according to HSBC, the biggest of the city’s three currency-issuing banks.

“HSBC saw record-high subscriptions of the latest batch of the government’s Silver Bonds by our customers, of which more than 30 per cent had never subscribed to Silver Bonds with us before,” said Maggie Ng, head of wealth and personal banking at HSBC Hong Kong.

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