Saturday, May 25, 2019
Martin Hennecke

Silver Bond wins more hearts
The average amount of subscription to the Silver Bond by the elderly on the first day of application stood at HK$120,000, 25 percent higher than last year's level, said Bank of China (Hong Kong).

The lender attributed the increase to the higher 3 percent interest rate offer by the bond issue compared to the 2 percent yield in last year's bond issue.

Last year's bond issue attracted 44,000 investors, whose total subscription amounted to HK$4.2 billion.

The latest bond issue, with a tenor of three years, aims to raise HK$3 billion. Hong Kong residents, aged 65 and above, are eligible to apply, with a minimum investment of HK$10,000.

Subscription will close next Thursday, and the bond will be issued on December 17. Applicants may apply to subscribe through one of 20 designated banks or 15 designated securities brokers.

"The Silver Bond issuance is intended to provide an investment product with steady returns for senior citizens and encourage financial institutions to tap into the immense potential of this 'silver market' by introducing a wider spectrum of appropriate products," a government spokesperson said.

The Financial Secretary announced in the 2018-19 Budget that the Government will issue Silver Bonds in 2018 and 2019 to further develop the local bond market.

Returns of mandatory provident funds have dropped 8 percent from the beginning of the year until yesterday. The average loss of each MPF member is estimated at HK$16,287. Equity funds are said to have incurred the biggest loss at 11.3 percent, followed by mixed assets funds which shed 8.86 percent.

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