The Government agency has launched a programme to tap savings earning low interest from financial institutions
The Hong Kong Mortgage Corp has set up a $20 billion retail bond programme to tap money being switched from bank term deposits because of low interest rates.
Subscriptions for the first issue, to raise between $800 million and $1.2 billion, can be lodged through branches of 19 banks from today. The issue closes on June 3.
In another move designed to take advantage of changes in the way people are saving, HKMC chief executive Peter Pang Sing-tong said $3.4 billion worth of mortgage-backed securities - debt paper backed by mortgage loan repayments - would be issued to retail investors in the third quarter for the first time.
He said the strong response to last month's government securitised bond backed by tolls from five tunnels and the Tsing Ma Bridge - the $2.47 billion retail tranche attracted $7.71 billion in applications from 35,300 investors - showed retail investors were interested in asset-backed bonds.
The HKMC was set up by the government to promote the bond market and reduce property risks faced by banks.
