Curiosity Charge Dedication
The Hong Kong Financial Authority (HKMA), representing the Hong Kong Particular Administrative Area Authorities, has introduced the each year rate of interest for the sixth curiosity cost of the iBond Sequence due in 2024. In line with the HKMA, the sixth curiosity cost can be made on June 24, 2024, below the phrases outlined within the Problem Round dated Might 12, 2021.
The rate of interest for the sixth cost is decided as the upper of the prevailing Floating Charge and Mounted Charge. On June 7, 2024, these charges have been introduced as follows:
| Floating Charge: | 1.98% |
| Mounted Charge: | 2.00% |
Based mostly on this knowledge, the rate of interest for the sixth curiosity cost is ready at 2.00% each year.
Background and Significance
The iBond Sequence, recognized by Problem Quantity 03GB2406R and Inventory Code 4246, is a part of the Retail Bond Issuance Programme below the Authorities Bond Programme. This bond sequence has been vital for retail traders in Hong Kong, providing a safe funding avenue with steady returns.
The unique date for the sixth curiosity cost was June 23, 2024; nevertheless, as this date shouldn’t be a enterprise day in Hong Kong, the cost has been rescheduled to the following enterprise day, June 24, 2024. Curiosity will proceed to accrue till the brand new cost date, making certain traders obtain the total advantage of their funding.
Floating Charge Calculation
The Floating Charge for the sixth curiosity cost was calculated based mostly on the year-on-year charges of change within the 2019/20-based Composite Client Value Index (CPI) for the precise months main as much as April 2024:
| Month | Yr-on-year charges of change in CPI (%) |
|---|---|
| November 2023 | 2.60 |
| December 2023 | 2.40 |
| January 2024 | 1.70 |
| February 2024 | 2.10 |
| March 2024 | 2.00 |
| April 2024 | 1.10 |
| Arithmetic Common | 1.98 |
This arithmetic common of 1.98% was in comparison with the Mounted Charge of two.00%, with the upper price being chosen for the curiosity cost.
Implications for Buyers
The willpower of the rate of interest at 2.00% each year reaffirms the soundness and attractiveness of the iBond Sequence for traders. This determination ensures that bondholders obtain a aggressive return, reflecting the federal government’s dedication to offering safe funding alternatives.
The HKMA’s announcement is a part of a broader effort to take care of transparency and predictability within the monetary markets, essential for investor confidence and market stability.
For extra detailed data, go to the official supply.
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