THE $700 million worth of mortgage-backed bonds issued by Cheung Kong (Holdings) have been well received by foreign investors, according to deputy chairman and deputy managing director Victor Li. There had been rumours that the issue met with a cool response. ''The initial response has been good. The underwriter told me it was progressing satisfactorily, although we won't know the results until the exercise is completed,'' said Mr Li. He expected the issue to be better received by investors abroad, especially in North America where mortgage securitisation is popular. ''I would guess many subscribers are overseas investors, because mortgage securitisation is so new to Hong Kong, but it's [as] old as an antique overseas,'' he said. There had been press reports that the issue's underwriter Merrill Lynch had difficulties in selling the securities. ''This has been the first mortgage securitisation in Hong Kong and it's inevitable there are many speculations about the response to it,'' said Mr Li. The subscription results of the issue would be released in the near future. he said.