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the new batch of silver bonds issued by the hong kong sar government will start a two-week subscription period on september 30. the bonds are aimed at citizens over 60 years old, so they are called silver bonds. the target issuance amount is hk$50 billion, and the funds raised will be used for infrastructure projects. this is a bond that “kills three birds with one stone”, benefiting the public, supporting hong kong’s infrastructure, and enriching hong kong’s financial market.

the issuance of silver bonds is one of the measures taken by the sar government to cope with the aging of the population and promote inclusive finance. as of the first half of this year, among hong kong's population of more than 7.5 million, there were more than 2.36 million people over the age of 60. the large number of people who are eligible to purchase the silver bond makes it a truly inclusive bond. this is the ninth silver bond issuance in hong kong. in view of the fact that the previous issuance has been over-subscribed, an additional issuance of hk$5 billion has been reserved for this issuance. silver bonds are popular mainly because of the stability of their returns. the term of this batch of silver bonds is 3 years, and interest is distributed every six months. the interest rate is set at no less than 4%. if the inflation rate in a certain half-year period is higher than 4%, the interest rate will be determined based on the inflation rate. this design ensures investors’ return expectations that “beat inflation.” there is no secondary market for silver bonds. investors can sell the bonds to the sar government before the bonds mature, and the sar government will redeem them at the original price and corresponding interest. in order to benefit more citizens, the sar government has set an allotment quota of up to hk$1 million per investor.