Financial Secretary Paul Chan on Sunday said a planned issue of silver bonds would offer investors attractive returns, including interest rates of at least four percent.

The bonds, announced this week, will be available to investors born in or before 1965, offering annual returns matching Hong Kong's inflation rate or four percent, whichever is higher.

Writing on his blog, Paul Chan said the investment sector was positive towards Hong Kong's development prospects, because of its unique advantages and its flourishing innovation and technology ecosystem. Tech start-ups hoped to use the city as a springboard to mainland and international markets.

"Technological innovation can lead to leaps and bounds in economic and industry development, but this force needs capital support and leverage financial power," Chan wrote.

"If we could activate the financial services chain, we could allow more funds and capital to support our start-up enterprises better, injecting a large force towards the development of the local innovation and technology industry," he added.

Chan noted the bonds would offer elderly citizens a safe and reliable place to park their money.

"The bonds provide the elderly with a low-risk and reliable investment choice. Not only could they receive stable interest returns, bondholders can also contribute towards the development of their own community and the city. It is a win-win investment," he wrote.

The latest batch of silver bonds will be available to the public from September 30. Money raised will be allocated to the Capital Works Reserve Fund, for use on infrastructure projects.
_____________________________
Last updated: 2024-09-15 HKT 22:34