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Hong Kong raises size and guaranteed returns on its Silver Bond aimed at city’s 2 million elderly citizens
- The guaranteed annual rate for the three-year bond has been raised to 4 per cent from 3.5 per for the previous batch issued a year ago
- ‘We believe such a return will give [Hong Kong’s elderly citizens] a safe investment instrument,’ says Clara Chan, an executive director at the HKMA
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The Hong Kong government has increased the size and guaranteed returns for its latest batch of Silver Bonds, offering some 2 million senior citizens an investment that could help safeguard their savings against inflation.
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For the seventh batch of the inflation-linked bonds aimed at people aged 60 and above, the government has raised the size of the offering to HK$35 billion (US$4.5 billion), from the HK$30 billion issued in the last tranche a year ago.
It may choose to increase it again, to a maximum of HK$45 billion, according to Clara Chan, executive director (monetary management) at the Hong Kong Monetary Authority (HKMA), the city’s de facto central bank.
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The guaranteed annual rate for the three-year bond has been raised to 4 per cent, from 3.5 per for the previous batch issued in August 2021. The bond will either pay that guaranteed annual rate, or a floating rate which is pegged to the city’s consumer price index, a measure of inflation, whichever is higher.
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