Financial News
Written by: Huang Jie, Kwong Yuet Ting
2020-10-05 17:08
Last update date: 2020-10-05 18:14
The HKMA announced today (5th) the details of a new batch of iBonds, with a target issuance of 10 billion yuan, and the issuance amount can be increased to a maximum of 15 billion yuan based on demand.
The bond term is 3 years, with dividends paid every six months, and the interest rate is not less than 2%.
The Hong Kong Monetary Authority announced the details of the seventh batch of inflation-linked bonds (iBond). The issuance of this batch of iBond is 10 billion yuan. The maximum issuance amount can be increased to 15 billion yuan. The term is 3 years. The minimum subscription amount is 10,000 yuan. Interest is paid once a month, and the minimum interest rate is guaranteed to reach 2%, which is different from the 1% fixed interest rate of iBond in the past.
Available for subscription from October 23
The 7th batch of iBond subscription period is from 9:00 am on October 23 to 2:00 pm on November 5.
All investors holding Hong Kong identity cards can subscribe through the allotment bank, securities brokerage, and Hong Kong Securities Clearing Company Limited.
The batch of iBond will announce the distribution results no later than November 12, and be issued on November 16; and will be listed on November 17.
The HKMA stated that in order to encourage citizens to subscribe through electronic channels, the 7th batch of iBond subscription period will increase by 2 working days compared with previous years to 9 working days.
Said to allow investors to chase and retreat and defend
Liu Yingbin, Senior Assistant President of the HKMA, believes that the approval of iBond is an enhanced version. He also pointed out that in a low interest rate and low inflation environment, iBond can provide stable returns to the public and prepare for the future inflation environment. Retreat can be defended."
The HKMA pointed out that if the subscription amount is less than 10 billion yuan, all subscriptions will be satisfied. If the amount exceeds 10 billion yuan and is less than 15 billion yuan, the issuance quota will be increased as appropriate to meet market demand. If the subscription amount exceeds 15 billion yuan, a lottery will be used. Allocation, each winning 1 lot.
The HKMA pointed out that if the subscription amount exceeds 15 billion yuan but the number of subscriptions is less than 1.5 million, then 1 lot will be allocated to each subscriber, and then the balance will be allocated to the second lot of the subscriber, and so on until the balance is insufficient. To satisfy all subscribers, it will be processed by lottery.
Liu Yingbin revealed that the minimum interest rate set for the fixed interest portion of iBond this time mainly refers to the bank deposit interest rate.
(Photo by Yu Junliang)
In the past, many subscribers will hold long-term
Liu Yingbin believes that in a low interest rate and low inflation environment, iBond has a minimum interest rate of 2%, which is higher than bank time deposits. It can provide citizens with stable returns and prepare for the future inflation environment.
There is no subscription limit for this batch of iBonds. The public can subscribe for as many lots as they want. In addition, the issuance amount can be increased by up to 50% compared to the original plan. They are confident that the public will respond positively to the issuance of iBond.
Liu Yingbin revealed that this time the minimum interest rate is determined mainly with reference to bank deposit interest rates, and also pay attention to the fixed deposit interest rate of virtual banks. However, bond investment is different from bank deposits and stock investment. The public should consider their needs and suitability, and the products are Be aware of investing in new products.
Regarding whether some people are worried or plan to make a profit on the first day of iBond listing, he said that bond investors are more long-term, and after purchase, they usually hold it until the interest payment date as a long-term investment.
iBond 2020｜Issuance amount of up to 15 billion, return of at least 2%, accept subscription from October 23
iBond 7｜The Monetary Authority Announces Details of Guaranteed Interest Rate of Two Percent
iBond 2020｜2% minimum interest rate guarantee
iBond minimum interest rate plus Chen Maobo's blog warning guarantee up to 2%
For this time, the IBond fixed interest rate is 2%, which is higher than the previous 1%.
Liu Yingbin emphasized that the relevant arrangement is reasonable, and pointed out that under the long-term low interest rate environment, the relevant interest rate arrangement can increase the attractiveness of subscribers. He also pointed out that since the investors who subscribed for new shares and iBond are two different investors, they do not think it will have conflict.
As for the number of subscribers, it is clearly difficult to predict.
When asked whether the maximum issuance limit of iBond this time is 15 billion yuan, will it affect the issuance of silver bonds in the future, Liu Yingbin clearly stated that the issuance of silver bonds will not be affected in the future.
iBond
