Hong Kong’s Silver Bond Sale Soars Amid Falling Interest Rates: Stable Returns Entice Investors

The recent Silver Bond offering in Hong Kong kicks off impressively due to attractive steady returns. With the declining interest rates, the assured 4 per cent yield on the US$6.4 billion bonds appears increasingly appealing.

Bank managers have reported a favourable reception to the recent issuance of Silver Bonds by the Hong Kong government. This latest initiative, valued at HK$50 billion, or US$6.4 billion, was made available for subscription on Monday.

The bonds have been a hit among purchasers aged 60 and over because they provide a secure annual return of 4% and let investors contribute to the city's infrastructure developments, according to experts.

HSBC, the largest of the city's three money issuing banks, reported that the most recent set of bonds garnered a highly positive reaction on the initial day of subscription.

"As the US initiates a decrease in interest rates, it's anticipated that Hong Kong will follow suit by reducing theirs," stated Sami Abouzahr, the leader of the investment and wealth solutions division at HSBC Hong Kong's wealth and personal banking department. "Accordingly, top-tier bonds become a promising choice for investors wanting to secure yields, especially our older or retired customers who have a lower tolerance for risk and favor steady, assured returns."

The most recent batch of bonds allows these citizens to spread out their investments and ensure a desirable income, he further noted.