Government launches new batch of Silver Bond
The Hong Kong Monetary Authority (HKMA) announced on Friday the latest government bond sale for residents aged 60 or above, with higher guaranteed returns and a bigger chance of getting a share than in the previous sale last August. The latest three-year Silver Bond programme, the eighth batch so far, will offer a minimum guaranteed dividend pay-out of 5 percent, up from 4 percent previously. The issuance size will increase from HK$35 billion to HK$50 billion, with an option for the government to further raise this to HK$55 billion depending on the market response. "An increase in the issuance size aims to promote greater participation by senior citizens and a higher fixed rate aims to benefit our senior citizens by enhancing the guaranteed return in this highly uncertain investment environment," Darryl Chan, a deputy chief executive of the HKMA, said at a press conference. In a statement, Financial Secretary Paul Chan also explained the reason for the higher baseline return than in past issuances. "The main consideration is to provide a stable, safe, low-risk and attractive investment option for senior citizens in the current volatile investment environment," Chan said.  Interest will be paid once every six months, unchanged from the previous arrangement. Minimum subscription is HK$10,000 and a maximum allocation of HK$1 million per investor will be imposed, to prevent an over-concentration of holdings by a small number of people. The almost two-week subscription period is due to begin on July 28. Nearly 290,000 people subscribed for the Silver Bond last year.