[Interest income strategy]The price of iBond due this year hits a new high, and the 2-month return beats the Hong Kong dollar fixed deposit – Hong Kong Economic Times – Knowledge – Finance

2023-09-09 13:51:18

The Hong Kong government has launched the Hong Kong government inflation-linked bonds (iBond) since 2014, and the seventh batch of iBond (04239)
Due on November 16 this year, its bond prices on the exchange have recently rebounded and hit a new high in one year. It turns out that although the iBond only has one interest rate left, coupled with the fact that the bond price is still at a discount, the actual return in 2 months is higher than that of a Hong Kong dollar time deposit. However, before investors buy iBond, they must first calculate whether the commission or handling fee costs are cost-effective.

The Hong Kong Government Inflation-linked Bond (iBond) is a three-year Hong Kong dollar government bond with a face value of HK$10,000 per lot. It pays dividends every six months. Its interest rate is divided into floating interest rate and fixed interest rate. The floating interest rate is related to Hong Kong’s inflation in the last six months. The fixed interest rate for the seventh batch of iBond in 2020 is 2% (guaranteed interest rate), and the final dividend payout rate shall be higher.

There are reasons why iBond broke the top. Please see the following pictures for details.

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Written by: Xu Jiangming

Column name: Investment School

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