Hong Kong’s HK$50 billion Silver Bonds issue a ‘win-win investment’, says Paul Chan
Financial Secretary Paul Chan says bonds will offer elderly residents a safe and reliable place to park their money
Hong Kong’s finance chief has hailed a coming government issue of HK$50 billion worth of bonds to fund infrastructure projects as a “win-win investment” while throwing his support behind similar moves by public bodies to raise money.
Chan noted the three-year bonds would offer elderly residents a safe and reliable place to park their money.
“The bonds provide senior citizens with a low-risk, safe investment choice with reliable returns,” Chan said.
“They not only receive stable interest returns, but can also contribute to the development of their own community and the city. It is a win-win investment.”
He said a cycle of US interest rate cuts could possibly start later this week after a meeting of the central bank, the Federal Reserve. Some analysts expect the Fed to deliver a rate cut of 0.25 percentage points although others believe a 0.5 percentage point reduction is possible.
Chan announced in his budget in February that the government would issue HK$120 billion worth of bonds in 2024-25. That includes a HK$70 billion retail tranche comprising HK$50 billion worth of Silver Bonds and HK$20 billion in green bonds and infrastructure bonds.
