Hong Kong’s US$1.27 billion annuity plan fails to ignite on launch day amid concerns about returns, gender
Latest welfare initiative aimed at ageing population not attractive enough for city’s savvy investors
Hong Kong’s HK$10 billion (US$1.27 billion) public annuity plan received a mixed response on Monday, after application forms became available through 20 local banks.
HSBC and Bank of China (Hong Kong) reported queues outside some branches. The forms are available at 700 branches of local banks, with registration for the scheme open from July 19 until August 8. HKMC Annuity, the government agency handling the scheme, said it would announce further details once the registration period has ended.
The returns are expected to reach 4 per cent, which is reasonable
The low returns promised and difference in earnings for men and women dominated the response to the scheme on its first day.
The scheme allows residents to invest a maximum lump sum of HK$1 million, which will earn women HK$5,300 every month and men HK$5,800. The minimum investment of HK$50,000 will earn women HK$265 a month and men HK$290. The monthly payments are for life and the government will shoulder any losses.
If popular, the government will double the amount it will accept to HK$20 billion, while the scheme will run every year with a different quota.
