Hong Kong to triple Silver Bond offering in July, lower minimum age to 60 to widen pool of eligible senior citizens

The sixth batch of Silver Bonds will open for sale on July 20, paying a minimum guaranteed rate of 3.5 per cent annually

The reduced age limit will enable 600,000 more people who are aged between 60 to 64 to subscribe

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The move will allow an additional 600,000 residents born in 1952 or earlier to qualify for the securities. Photo: Jonathan Wong

Published: 7:30pm, 29 Jun 2021Updated: 3:23am, 30 Jun 2021

Hong Kong is opening its record bond offering for senior citizens to more of the city’s pool of ageing population to help them cope with diminishing investment returns after decades of near-zero interest rates.

The government will lower the minimum age of eligibility to 60 from 65 for the sale of HK$24 billion (US$3.09 billion) of so-called Silver Bonds, according to the Hong Kong Monetary Authority. The three-year inflation-linked notes will go on sale from July 20 to 30, and may be upsized to HK$30 billion, depending on demand.

The decision will allow an additional 600,000 residents born in 1962 or earlier to qualify for the securities, expanding the expected pool of subscribers to about 2 million, according to Clara Chan, executive director for monetary management at the de facto central bank.

Samson Yuen, head of currency and settlement at the Hong Kong Monetary Authority and Clara Chan, executive director (monetary Management) speak at a briefing on Silver Bond in Central on June 29. Photo: K. Y. Cheng

“Lowering the eligible age for subscription to 60 will not only allow more citizens to benefit from steady returns in the current investment environment of low interest rates clouded by uncertainties, but it will also encourage the financial sector to tap into the immense potential of the silver market,” Christopher Hui Ching-yu, acting financial secretary, said in a statement.

Hong Kong has one of the fastest-ageing societies in the world. It ranks 33rd globally, with almost a sixth of its 8 million residents aged 65 years or older, according to government statistics. Life expectancy is the longest at more than 85 years.

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