Encouraging older citizens in HK to save
I refer to Jake van der Kamp’s take on silver bonds in his column (“What put me off silver bonds despite reasonable yield”, July 28).
Firstly, he is not entitled to participate in the first tranche of these bonds as it closes today and Jake, as he mentions, is only 65 by December 31. The government has at this stage made no mention of further tranches. Sorry, out of luck, Jake.
Secondly, the bid to purchase these bonds via HSBC is as simple as five mouse clicks on their online web banking site. I had absolutely no problem with this process and was given full information by a friendly premier account manager to boot.
Thirdly, the government (via the Hong Kong Monetary Authority) is trying to encourage older Hong Kong citizens to save and to provide them with a government-backed bond with a guaranteed base interest rate. I also agree that these bonds should not be tradeable on the local stock exchange casino (oh sorry, I mean Hong Kong Exchanges & Clearing) in order to discourage quick flipping by rampant punters after the initial public offering. These are meant to be a savings vehicle for a period of at least three years.
Finally no mention of grovelling and pleading to cash in your bonds before the three-year term is up. Just apply.
Ian Johnston, Discovery Bay