Daily Management Review

Hong Kong authorities will issue special bonds to combat inflation


The Hong Kong authorities will issue special iBond bonds for retail investors in November this year to protect the population from inflation.

This was announced on Monday by the press service of the government of the special administrative region of China.

It is expected that such securities will be issued in the amount of 10 billion to 15 billion Hong Kong dollars (from $1.29 billion to 1.94 billion) with a maturity of three years. 

Interest will be paid to holders every six months at a rate that will depend on the rate of inflation and is guaranteed to be at least 2%.

The authorities note that this financial product will help the population to cope with rising prices and ensure safe investments in an unstable, high-risk and volatile market due to the coronavirus pandemic.

The bond application book will be open from 23 October to 5 November, and its market launch is expected on 16-17 November.

source: scmp.com