Invest in Hong Kong iBond today: Finance guide on how to invest in Hong Kong’s retail government bond market
21 July 2014
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
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.
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