The Hong Kong Monetary Authority is issuing another HK$10 billion of inflation-linked bonds, or iBonds.
It is the second such move and is part of an effort to develop the city's bond market and protect residents against inflation.
With the stock market continuing to decline and bank interest rates staying low, many analysts believe Hong Kong investors are likely to respond enthusiastically.
Analysts say iBonds are considered 'safe-haven' products compared to other investments, especially as the government may decide to raise public housing rents and fares on public transport again.
'The first batch of iBonds was in great demand and many investors have been waiting for more,' said Peter Pak, an executive director at BOCI Securities.
The thee-year bonds, with a minimum subscription of HK$10,000, will have a floating interest rate that will match the consumer price index of the preceding six months.
