Hong Kong Financial Authority Units 4% Curiosity Price for Silver Bond Collection

The Hong Kong Financial Authority (HKMA) has introduced the rate of interest for the fifth curiosity fee of the Silver Bond Collection due in 2025, as per their newest launch. The choice impacts Difficulty Quantity 03GB2509R, a part of the Authorities Bond Programme’s Retail Bond Issuance.

Curiosity Price Particulars

As outlined within the Difficulty Round dated 9 August 2022, the curiosity fee is scheduled for 14 March 2025. The HKMA declared that the related rate of interest can be decided primarily based on whether or not the prevailing floating charge or fastened charge was larger on 28 February 2025. In response to the HKMA, the fastened charge was set at 4.00%, whereas the floating charge was calculated at 1.82%.

Consequently, the fastened charge of 4.00% every year was prioritized, marking it because the relevant rate of interest for the upcoming fee.

Context and Implications

The Silver Bond Collection is a key part of the Hong Kong Particular Administrative Area Authorities’s technique to offer secure funding alternatives for senior residents. The choice to use the fastened charge displays a cautious strategy in making certain favorable returns for traders amidst fluctuating market circumstances.

Moreover, the floating charge was derived from the year-on-year adjustments within the Composite Shopper Value Index (CPI) for the months main as much as January 2025. The index confirmed various charges: August 2024 at 2.50%, September 2024 at 2.20%, and October to December 2024 at 1.40%, with January 2025 reaching 2.00%. The arithmetic common of those figures resulted within the aforementioned floating charge of 1.82%.

For extra particulars, check with the official announcement by the Hong Kong Financial Authority.

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