Hong Kong’s HK$50 billion Silver Bonds attract senior citizens amid rate-cut expectations
Some 300,000 to 350,000 residents are likely to subscribe to the notes as they offer better returns than time deposits, BrightSmart CEO says
Hong Kong banks and brokers reported keen interest in the latest batch of Silver Bonds compared with last year after subscriptions opened on Monday.
HSBC, the biggest of the city’s three currency-issuing banks, said application volumes and values were higher compared with the first day of sales last year.
“The share of digital submission continues to grow,” a spokesperson said. “Separately, around 30 per cent of the applicants are new investors in the Silver Bonds programme with us.”
Futu Securities reported a similar increase, noting that the number of customer inquiries at its branches had risen compared with last year.
“With the US Federal Reserve widely expected to start a rate-cutting cycle soon, and Hong Kong interest rates anticipated to decline as well, the Silver Bonds offer senior investors a stable return and a low-risk investment option,” the online brokerage said.
ICBC (Asia) said most of its customers subscribed through online channels, which accounted for about 75 per cent of total subscriptions. “Each customer subscribed for an average of over 30 lots, an increase of about 20 per cent compared with last year,” the bank said.