Hong Kong government’s iBonds draw record 600,000 subscribers offering HK$36.1b

The Hong Kong government’s fifth batch of inflation-linked bonds attracted a record 600,000 subscribers offering a total of HK$36.1 billion, according to initial data released by the city’s de facto central bank as subscriptions closed on Wednesday.

Those figures represented increases of about 23 per cent and 25 per cent, respectively, compared with the fourth sale, held in August 2014, when the Monetary Authority received 488,170 applications for a total of about HK$28.79 billion in principal amounts of bonds.

Up to HK$10 billion of iBonds are available in the current round of issuance.

Market watchers have estimated some two-thirds of the subscribers are likely to obtain two lots of iBonds each, while the rest will hold only one lot each.

“Recent fluctuations in the stock market may have attracted relatively more conservative investors to iBonds,” Dr Billy Mak Sui-choi, associate professor of Baptist University’s department of finance and decision sciences, said.

“While iBonds will not make you rich overnight, you can be sure you won’t lose all at the end of the day.”