The silver bond, which was enthusiastically subscribed by the elderly, just closed last Wednesday. It is reported that the HKMA has started preparations for the issuance of the second batch of green retail bonds and asked banks about their intention to participate in the distribution. According to market participants, referring to the past, it is estimated that the bureau may announce the details of the sale of a new batch of retail green bonds in the short term, possibly as soon as the end of this month or the beginning of next month, but everything is subject to the final decision of the bureau. In view of the low price of the first batch of retail green bonds last year, coupled with the high fixed deposit interest rate and the 5% silver bond interest rate, financial experts believe that if the new batch of retail green bonds is to sell well, the guaranteed minimum interest rate must be at least 4.5%.
When Financial Secretary Paul Chan Mo-po announced the Budget in February, he announced that he planned to issue green retail bonds of no less than 15 billion yuan this fiscal year.
According to market sources, at the beginning of last week, around the time of the cut-off of bank bonds, the Monetary Authority has asked retail banks about their intentions to participate in the distribution of retail green bonds, and how the banks will make arrangements and provide support. As usual, after the HKMA inquires about the distribution intentions of banks and securities firms, relevant announcements will generally be made in a short period of time, so it is estimated that there will be an opportunity to announce the details of the retail green bond sale at the end of this month or early next month at the earliest. The final decision and announcement date shall prevail.
Batch 1 retail green bond returns:
Whenever the government issues retail bonds linked to inflation, everyone pays the most attention to the guaranteed interest rate of the bond, that is, the guaranteed minimum interest rate. Some people in the industry admit frankly that the new batch of green bonds will not be attractive without a guaranteed minimum interest rate of 4.5%, because the current Hong Kong dollar fixed deposit interest rate is generally above 4%, or even higher than 4.5%. The term is as long as 3 years, allowing citizens to lock in the 3-year interest rate. However, most citizens only look at the fixed deposit interest in front of them. In addition, the first batch of green bonds whose bond prices are still diving will inevitably cast a psychological shadow on the citizens.
Financial experts: Guaranteed 4.5 centimeters to attract
Some financial experts pointed out that the hot purchase of silver bonds is all due to the guaranteed minimum interest rate of up to 5%. I believe that the public will also have expectations for the newly approved green bonds with guaranteed minimum interest rate. Silver bonds, but in view of the high interest rate of fixed deposits, the interest rate of green bonds should not be too low. I think it should be at least 4%.
The citizens who bought the first batch of retail green bonds last year experienced a situation where the bond price broke and has not yet risen to the level, and the guaranteed minimum interest rate is only 2.5%. Some investors are still living in boats. Nevertheless, financial experts believe that as long as the return on green bonds is guaranteed to be attractive, existing investors will continue to subscribe, and at the same time, new players will be attracted to enter the market. For short-term speculators, it also depends on the level of guaranteed minimum interest rate. If it is not higher than 4.5%, it will be difficult to have meat.
The bond price closed at 96.35 yuan last Friday
The bond price closed at 96.35 yuan last Friday. The government issued the first batch of retail green bonds last year with a total value of 20 billion yuan. The term is 3 years. The admission price is 10,000 yuan. A total of 488,400 people applied for it. 5 lots of green bonds. On the first day of listing, the retail green bond fell below the issue price of 100 yuan at the opening of the market and closed at 99.7 yuan. In the past more than a year, the bond price had fallen as low as 94.8 yuan, closing at 96.35 yuan last Friday.
Dividend distribution schedule for the first batch of green bonds:
Interest Payment Date Interest Determination Date Annual Interest Rate Per 10,000 Hong Kong Dollar Bond Interest November 18, 2022 November 4, 2022 2.5% HK$126.03 May 18, 2023 May 4, 2023 2.5% To be determined November 2023 20 November 2023 TBA TBD 20 May 2024 MAY 3 2024 TBD TBD 18 November 2024 TBD 4 November 2024 TBD 19 May 2025 2 May 2025 to be determined to be determined
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2023-08-14 04:57:01
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