Offering and Trading
Government bonds issued under the institutional bond issuance programme are offered by way of competitive tender open to Primary Dealers. At least four business days before each tender date, the Hong Kong Monetary Authority (HKMA) will announce the amount of government bonds on offer. All tender applications must reach the HKMA during tendering hours on the tender date. Primary Dealers must indicate the quantity of the government bonds applied for and the bid price. Tenders accepted will be allotted in descending order of the price bid from the highest to the lowest accepted price. Successful bidders will be allotted government bonds at the price which they bid. The tender results, including the amount of government bonds allotted and the average accepted price, will be announced on the tender date on the Reuters screen (HKGBINDEX), Bloomberg (GBHK <GO>), the GP Programme website (www.hkgb.gov.hk), and any other means as advised by the HKMA.
Settlement will be effected on the first business day immediately following the relevant tender date. The HKMA will credit the nominal value of the government bonds allotted to the relevant Primary Dealers to their securities accounts maintained with the HKMA upon receipt of payments. Secondary-market trading on government bonds among Recognized Dealers can start from the same day onwards.
The Electronic Trading Platform will provide a channel for Recognized Dealers to provide indicative quotes and execute trades.
Government bonds can also be traded in the Hong Kong Stock Exchange.
More information on the offering and trading mechanism of the institutional bond issuance programme can be found in the Information Memorandum for the institutional bond issuance programme. The tentative issuance schedule of the government bonds for the institutional bond issuance programme is available here.