BOC HONG KONG(HK:02388) Zhi Tong Cai Jing·2025-08-29 12:03Group 1 - The Hong Kong government announced the issuance of the tenth batch of silver bonds with a stable interest rate of 3.85% for a three-year term, which is attractive compared to the current 12-month Hong Kong dollar fixed deposit rate of approximately 2% [1][2] - The target issuance amount for the silver bonds is HKD 50 billion, with the possibility of increasing it to a maximum of HKD 55 billion, under the infrastructure bond program [1][2] - The bonds will be issued without a secondary market, allowing investors to sell them back to the government before maturity to recover principal and accumulated interest [1] Group 2 - The funds raised from this batch of silver bonds will be allocated to the Basic Engineering Reserve Fund, aimed at better managing cash flow needs for large infrastructure projects [2] - The Hong Kong Monetary Authority has been appointed to manage the bond issuance, with Bank of China Hong Kong and HSBC serving as joint bookrunners [2] - Market expectations suggest that the US may reduce interest rates by a total of 75 basis points in September, December, and March of the following year, making the 3.85% guaranteed interest rate on the silver bonds particularly attractive [2]