Govt To Issue Silver Bond

(To watch the 2021-22 Budget speech with sign language interpretation, click here.)

The Government planned to issue at least $24 billion of Silver Bonds and $15 billion of iBonds this year to offer people investment options with steady and reliable return.

Moreover, in an effort to boost the substainable development of Hong Kong’s bond market, Financial Secretary Paul Chan suggested to raise the borrowing limit of the Government Bond Programme from $200 billion to $300 billion, and lower the eligible age for subscribing Silver Bond from 65 to 60.

Unveiling his 2021-22 Budget today, Mr Chan said the Government also planned to issue green bonds totalling $175.5 billion within the next five years, and issue retail green bonds.

The Pilot Bond Grant Scheme and the Green Bond Grant Scheme, set to expire by mid- 2021, will be consolidated into a Green & Sustainable Finance Grant Scheme.

On Bond Connect, the finance chief said the target is to launch the southbound trading within this year.

Reinforcing HK’s role

In its goal to develop the real estate investment trust market in Hong Kong and reinforce the city’s role as a premier capital raising centre, Mr Chan said a subsidy will be provided to encourage the listing of more REITs in the city.

The subsidy will cover 70% of the expenses paid to local professional service providers for the listing in HK in the coming three years, subject to a cap of $8 million.

A two-year pilot scheme is also in the pipeline to attract insurance enterprises or organisations to issue insurance-linked securities in Hong Kong. The grant for each issuance will be capped at $12 million.

To strengthen Hong Kong’s capital raising function as a premier asset and wealth management centre, Mr Chan said the Government will subsidise open-ended fund companies to set up or re-domicile to Hong Kong in the coming three years. It will cover 70% of the expenses paid to local professional service providers, subject to a ceiling of $1 million per company.