Secretary Paul Chan: Details of the issuance of HK$20 billion retail green bonds and infrastructure bonds will be announced in the coming months.

On September 15, the Financial Secretary of the Hong Kong SAR Government, Paul Chan Mo-po, published a blog post stating that the government had announced the upcoming issuance of retail silver bonds, providing a low-risk, stable and secure investment option for the elderly. Considering the current interest rate environment and market conditions, including expectations that the US Federal Reserve will start an interest rate reduction cycle after this week's meeting, the silver bonds have been set at attractive terms and arrangements, such as linking interest rates to inflation and guaranteeing no less than 4 per cent. In fact, this year's Budget proposed the issuance of 50 billion dollars in retail silver bonds for the current fiscal year, as well as 20 billion dollars in retail green bonds and infrastructure bonds. Besides aiming to make finance more inclusive, the government also hopes to increase the public's sense of participation and benefit in infrastructure and sustainable development projects. Details of the issuance of the remaining retail bonds will be announced in the coming months. It is reported that the proceeds from the issuance of the silver bonds will be allocated to the "Infrastructure Reserve Fund" to support the advancement of various infrastructure projects. Elderly subscribers to the silver bonds will not only receive stable interest income, but also contribute to the development of their communities and Hong Kong, making it a win-win investment. With support from the Hong Kong government, more public institutions will raise funds through bond issuance or other means to better utilize market funds and promote their work in different areas; such institutions include the Airport Authority Hong Kong, the Urban Renewal Authority, and the Hong Kong Housing Authority. This leveraging of market resources for fundraising also involves seeking the expertise and experience of the market to review the financial feasibility and rationality of projects. Paul Chan Mo-po pointed out that technological innovation can drive economic and industrial development forward in leaps and bounds, but this drive for change requires financial support, leveraging the power of finance. The research and development of cutting-edge technology, from conceptualization to application, often takes years and is a process full of challenges. Startups and enterprises in the early stages of expansion are often vulnerable. Finding more precise and efficient ways to match funding with support that meets the risk appetite and focus areas of fund providers, as well as their liquidity requirements, is a key step in unleashing financial support for tech innovation and building a thriving tech ecosystem. Activating the front end of the entire financial services chain to enable more private equity funds, venture capital funds, and long-term funds to better support startups will inject a strong driving force for the industrialization of the tech industry in Hong Kong. In addition, as tech innovation requires financial support, infrastructure development also needs the power of finance to accelerate progress. Through different types and terms of bonds, seeking funds looking for long-term and stable returns can be directed to support various types of infrastructure projects, expanding development capacity to promote overall economic growth.