Hong Kong plans third bond sale

Inflation-linked bond sale aims to raise HK$10 billion.

Hong Kong hopes to earn as much as HK$10 billion of inflation-linked bonds to local residents in its third such issuance of the debt since this began in 2011. More details for the three-year notes will be issued later, said the government.

The city first introduced inflation-linked bonds to help citizens preserve purchasing power and boost the local debt market.

The government said new rounds of quantitative easing in Europe, the USA and Japan may trigger another round of imported inflation. As a result, the government warns that inflation might rise to 4.5% this year versus 4.1% in 2012.

The inaugural sale of HK$10 billion got orders for HK$13.2 billion, while the second offering for the same amount saw bids of HK$49.8 billion.