Invest in Hong Kong iBond today: Finance guide on how to invest in Hong Kong’s retail government bond market - Expat Living Hong Kong

Invest in Hong Kong iBond today: Finance guide on how to invest in Hong Kong’s retail government bond market

 

Despite the threats of Occupy Central movement and recent downgrade of the Hong Kong property market, you’ve been here long enough to think it’s a safe bet (literally) to invest in HKSAR government’s ability to guarantee growth returns to investors. Retail government bond programme, iBond, begins its subscription period this week.

First introduced in 2011, investment in the iBond Series intends to promote further development of the retail bond market.

When is the iBond Series subscription period?
Investing into the iBond Series begins Wednesday, 23 July 2014 at 9am and closes Thursday, 31 July 2014 at 2pm. iBond’s expected issue date is Monday, 11 August 2014, with an expected listing date on the stock exchange of Tuesday, 12 August 2014.

How to buy into iBond/invest in the iBond Series?
Pegged to inflation rates, the iBond investment scheme is available in $10,000 HKD denominations, with a maximum issuance of $10billion HKD. Those holding a Hong Kong Identity Card are eligible to invest in the iBond Series, and must do so through a placing bank, securities brokers or the HKSCC (Hong Kong Securities Clearing Company). If iBond series is oversubscribed, the allocation of iBond will continue by ballot.

What is an eligible Placing Bank?

The following Placing Banks have been approved for the iBond Series:

Bank of China (Hong Kong) Limited

Bank of Communications Co., Ltd. Hong Kong Branch

The Bank of East Asia, Limited

China CITIC Bank International Limited

China Construction Bank (Asia) Corporation Limited

Chiyu Banking Corporation Limited

Chong Hing Bank Limited

Citibank (Hong Kong) Limited

Dah Sing Bank, Limited

DBS Bank (Hong Kong) Limited

Fubon Bank (Hong Kong) Limited

Hang Seng Bank Limited

HSBC

Hong Leong Bank Berhad, Hong Kong Branch

Industrial and Commercial Bank of China (Asia) Limited

Nanyang Commercial Bank, Limited

Public Bank (Hong Kong) Limited

Standard Chartered Bank (Hong Kong) Limited

Shanghai Commercial Bank Limited

Wing Hang Bank, Limited

Wing Lung Bank Limited

How do I receive iBond dividends?
As a 3-year bond, iBond investments are paid every six (6) months with a fixed rate of 1.00%. The floating rate is an average year on year rates of the change of OCPI (average inflation rates) for the six most recent months. The principal iBond investment amount will be repaid at a full 100% at its 3-year maturity date.