Key Information

inSight
Speeches
Speeches by Speaker
Norman T.L. Chan
Peter Pang
Eddie Yue
Arthur Yuen
Raymond Li
Edmond Lau
Esmond Lee
Meena Datwani
Vincent W.S. Lee
James Lau
Joseph Yam
Y K Choi
William Ryback
David Carse
Tony Latter
Andrew Sheng
Hans Genberg
Simon Topping
Michael Taylor
The Honourable Donald Tsang
Chen Yuan
Dai Xianglong
Don Brash
Jaime Caruana
Andrew Crockett
Mario Draghi
David Eldon
Stanley Fischer
Timothy F. Geithner
Stephen Grenville
Kenneth G. Lay
William McDonough
Ernest Patrikis
Glenn Stevens
Jean-Claude Trichet
Tarisa Watanagase
Zeti Akhtar Aziz
Press Releases
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
Press Releases by Category
Bogus Voice Message Phone Calls
Banking in Hong Kong
Fraudulent Websites, E-mails and Telephone System, and other fraud cases
Granting of Banking Licences
Exchange Fund
Table of Multiples of Notes and Payments for Allotted Amount under non-competitive tender
Table of Multiples of Notes and Payments of Application Amount under non-competitive tender
Tender of Exchange Fund Bills and Notes
Tender Results of Exchange Fund Bills and Notes
Tentative Issuance Schedule for Exchange Fund Bills and Notes
Appointments and Departures
HKMA Pay Review
HKMA Publications
Speeches
The Hong Kong Mortgage Corporation
Hong Kong Note Printing Limited
Hong Kong Institute for Monetary Research
Exchange Fund Investment Limited
Others
Hong Kong Financial Infrastructure
International Relations
Investment Products Related to Lehman Brothers
Monetary Policy
Notes and Coins
Renminbi business
Credit Card Lending Survey
Monetary Statistics
Residential Mortgage Survey
Year 2000
Others
Guidelines and Circulars
Guidelines
Circulars
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
359.3404

insight

Six things you may not know about iBond

(Translation)

Mina:

iBond6 is listed on the Stock Exchange of Hong Kong today. Have you applied for it?

Ronnie:

It’s a personal business matter, so I won’t tell you! But I can tell you six interesting things about iBond, which I bet you don’t know.

Mina:

I’m not that ignorant.

Ronnie:

OK. Let’s begin with a simple question – do you know why the bond is called “iBond”?

Mina:

Must be because of the popularity of iPhone! We followed the trend when naming the products.

Ronnie:

You really are ignorant, you know. iBond is the abbreviation for “inflation-linked retail bond”.

Mina:

I see, the “i” in iBond stands for “inflation-linked”.

Ronnie:

The next question is a technical one. How is iBond allocated?

Mina:

I do know the answer to this. There are three different scenarios pertaining to the allocation of iBond: The first scenario is where the bond is undersubscribed. In this case, all applicants will be allocated the full amount applied for. The second scenario is where more than one million people apply for the bond. In this case, the bond will be allocated by ballot, because the total issuance size is only HK$10 billion with denomination of HK$10,000 per unit. The third scenario is where the bond is oversubscribed but the number of applicants is not more than a million, which was the case of the previous six issues. In this case, the allocation process will be divided into cycles. In the first cycle, each applicant will be allocated the first unit. In the second cycle, if the quantity of remaining unallocated bonds permits, a second unit will be allocated to each of those who applied for two units or more. It goes until reaching a point at which the quantity of remaining unallocated bonds does not permit another cycle to be completed. At this point, the remaining unallocated bonds will be allocated by ballot, allocating an additional unit to each ballot winner. The biggest advantage of this approach is that everyone has an equal chance of getting an allocation of the bond, ensuring fairness to all applicants. In other words, your chances will not increase simply because you applied for more units of the bond.

Ronnie:

You’re certainly right this time Mina. Good job! But, do you know who designed this approach?

Mina:

No. Who is it?

Ronnie:

A “Tall Man” at the HKMA.

Mina:

?!

Ronnie:

The fourth question is also related to the allocation of iBond. I’m sure you know that multiple applications are not allowed. But, how do we ensure that all multiple applications are screened out?

Mina:

By using computers, of course!

Ronnie:

True. But when the iBond was first issued, in addition to verifying the identity of applicants with the aid of tailor-made computer programmes, to play safe, the HKMA assigned some 30 staff members to screen all the applications with the naked eye. With more than 150,000 applications received at that time, the staff had to screen some 5,000 applications each!

Mina:

This is in line with the spirit of being diligent indeed!

Ronnie:

It also fits in with the spirit of being careful! Here comes the fifth question – the HKMA did receive a complaint when the iBond was first launched. Can you guess what it was about?

Mina:

Was it something to do with the iBond allotment being too small? Or the interest rates too low?

Ronnie:

Neither. The story goes that a self-declared “worried husband” wrote to the HKMA saying that his wife working in a bank had to work overtime because of the preparatory work for iBond. In response to this, one of our senior officials wrote him a reassuring letter in person.

Mina:

How endearing!

Ronnie:

You mean the husband or the senior official?

Mina:

Both!

Ronnie:

Now, to the final question. There’s one recurring feature in the promotional materials for all six iBond series. Do you notice that?

Mina:

How would I remember something like that!

Ronnie:

Come on, you have to live up to your status as a specially-assigned ‘Observer’ at the HKMA! To make it easier, let me show you the promotional materials.

promotional materials

Mina:

Oh, I see…there’s an escalator in all of them! Does the escalator have any profound meaning?

Ronnie (shrugs his shoulders):

I am also clueless about the thinking behind the use of this mysterious escalator. You may have to find it out from the “Tall Man” at the HKMA.

Mina:

Do you know which floor he’s on? Do you think if I can take the escalator to find him?

Ronnie:

Well, you can try. Good luck!

 

Written by Ronnie and Mina, the two specially-assigned ‘Observers’ who go around the HKMA office in IFC, Central, collecting interesting facts and sharing them with you from time to time.

 

21 June 2016

 

Last revision date: 21 June 2016
ABOUT THE HKMA
The HKMA
Tender Invitations
Careers@HKMA
Legislative Council Issues
Links
The HKMA Information Centre
KEY FUNCTIONS
Monetary Stability
Banking Stability
International Financial Centre
Exchange Fund
PUBLICATIONS & RESEARCH
Annual Report
Half-Yearly Monetary & Financial Stability Report
Quarterly Bulletin
HKMA Background Briefs
Reference Materials
Research
MARKET DATA & STATISTICS
CMU Bond Price Bulletin
Economic & Financial Data for Hong Kong
Monthly Statistical Bulletin
Monetary Statistics
KEY INFORMATION
Press Releases
Speeches
Guidelines & Circulars
Forthcoming Events
inSight
OTHER INFORMATION
Account Opening
Consumer Corner
Consumer Education Programme
Complaints about Banks
Complaints about SVF Licensees
Internet Banking
Fraudulent Bank Websites, Phishing E-mails and Similar Scams
Be Careful of Bogus Phone Calls and SMS Messages
Authenticate the Callers and Bank Hotline Numbers
Register of AIs & LROs
Register of Securities Staff of AIs
Register of SVF Licensees
Investment Products Related to Lehman Brothers
Photo Gallery