[Silver Bond 2026] Guaranteed return of 4.25%! How can you secure the maximum "9 exemptions" when subscribing?

What is a silver bond?

The Silver Bond is a retail bond issued by the Hong Kong Special Administrative Region Government, offering a stable‑return investment option for individuals aged 60 or above. Its interest rate is linked to the average annual inflation rate and includes a minimum yield; the principal will be repaid on the bond's maturity date. The Silver Bond 2026 was officially launched on September 15, with an issuance size of up to HK$55 billion (targeting HK$50 billion) and a coupon rate of no less than 4.25%.

Silver Bond Subscription Offer: Futu provides up to "9 exemptions"

Currently, Futu offers subscription to silver bonds and provides9 free offers! Includes no subscription fees, early redemption fees, custody fees, and more.

1 Futu Securities bears this fee on behalf of its clients, as charged by the Hong Kong Securities Clearing Company.

Note: Fees may be subject to real-time adjustments in accordance with the Hong Kong Stock Exchange or relevant regulatory authorities, and the final announcement shall prevail.

What are the eligibility requirements for Silver Bonds?

1. Age Requirement: Applicants must be aged 60 or older as of the bond application deadline.

2. Hong Kong Resident Status: Applicants must hold a valid Hong Kong Permanent Identity Card or a Hong Kong Identity Card.

Subscription Method for the Silver Bond 2026

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After the subscription opens, you can go to the Futubull app—Market—New Share Center to find Silver Bond and place your order. Note: Applicants who subscribe to Silver Bond through Futu must hold a Futu Securities account.

The silver bond is expected to announce its issuance size, subscription details, and allocation results no later than September 14, with an official issuance date of September 15, 2026. You can check the subscription results by going to the Futubull App—Market—New Share Center—Subscription Records.

Subscription Details for the Silver Bond 2026

Subscription Period: August 21, 2026, 09:00 – September 4, 2026, 14:00
Minimum denomination: HK$10,000 per lot
Bond term: 3 years, with interest payments made every six months.
Guaranteed annual interest rate: 4.25% per annum
Each person may submit only one application; duplicate applications will not be accepted, and investors may apply for the bonds through only one designated distributing institution.

What are the features of silver bonds?

1. Guaranteed minimum mechanism, unaffected by interest rate fluctuations

The interest rate on silver bonds is linked to inflation, with the higher of the fixed and floating rates applied as the effective interest rate. The fixed rate is 4.25%, while the floating rate is calculated as the arithmetic average of the year-on-year changes in the Composite Consumer Price Index published by the Census and Statistics Department over the most recent six-month period, thereby mitigating uncertainty and controversy arising from inflationary fluctuations.

Because the government has "guaranteed" a minimum interest rate of 4.25%, if you successfully win one unit of the silver bond—worth HK$10,000—you will receive at least 4.25% in annual interest, or HK$1,275. Moreover, should inflation exceed 4.25%, your actual yield will be even higher.

Silver bonds are issued by the Hong Kong Government and boast a high credit rating, resulting in extremely low credit risk. These bonds do not have a secondary market; if investors wish to cash out before maturity, the government will redeem them at par value plus any accrued interest. Should the need arise, bondholders may sell their bonds back to the government to recover both principal and interest, so investors need not worry about the impact of interest-rate cut cycles during the holding period.

2. "Cyclical Distribution," benefiting small investors

The allocation mechanism for silver bonds is very similar to that of green bonds and iBonds, aiming to accommodate retail investors with a per‑person cap of HK$1 million. If total subscriptions do not exceed HK$50 billion, all applications will be fully satisfied; if subscriptions are between HK$50 billion and HK$55 billion, additional issuance may be undertaken on a discretionary basis to meet all requests. Should total subscriptions exceed HK$55 billion, allocations will be made on a rolling basis.

The so‑called "circular allocation" can be understood simply as follows: the government will first allocate a tranche of bonds to each applicant. If the number of applicants exceeds 5 million, a lottery will be held to determine who receives bond allocations (with a target issuance size of HK$50 billion).

If any silver bonds remain, the government will allocate one additional bond to each citizen who subscribed to second‑hand or higher‑tier silver bonds. Should there be insufficient bonds to issue a second hand to every eligible applicant, allocation will be determined by lottery. Thereafter, the government will continue to apply this mechanism, issuing third, fourth, or further hands of silver bonds to investors until all available bonds have been distributed.

Why are silver bonds worth buying?

1. Guaranteed Return

The guaranteed annual interest rate is 4.25%, which is higher than the typical fixed-deposit rates offered by most banks (averaging around 2.5%–2.7%). In the current environment—where short-term rate hikes are possible but unlikely to be sustained—the likelihood of a sustained increase in deposit rates is low, making it difficult for investors to lock in long-term yields solely through fixed deposits. At present, Futu Cash Treasure offers up to 2.1844% annualized yield over seven days for Hong Kong dollars and up to 3.5624% annualized yield over seven days for U.S. dollars.

2. Backed by the government, with extremely high security

Silver bonds are issued by the government, boasting high credit quality and virtually zero default risk. They guarantee repayment of principal at par upon maturity, making them particularly appealing to older investors seeking stability.

3. High flexibility, stable cash flow

With a term of just three years, the funds are not locked in for the long term, and holders can request early redemption from the government at par value at any time for other purposes. The silver bond pays interest semiannually, helping seniors meet their daily living expenses and making it well-suited for retirees who require a regular income.

4. Low cost

By participating in the subscription through Futu, you can enjoy nine fee waivers (no fees for subscription, redemption, etc.). Bond offerings are available in lots of HK$10,000, making them accessible to all.

5. Simple and easy to understand

Silver bonds do not involve complex investment structures and, unlike stocks, are not subject to price‑fluctuation risk, making them well suited for older investors with limited investment experience.

Silver Bond Dividend Payment Details

Unit: Hong Kong dollars

*The Silver Bond 2024/2025 has not yet matured, and both the dividend period and the interest rate are calculated based on a fixed rate.

The foregoing information is for reference only and does not constitute any investment advice. Past performance is not indicative of future results and does not represent any forecast or guarantee of returns on silver bonds.

Futu provides9-Item Fee Waiver Offer, all of which are directly waived at the time of customer subscription. The waived fees include the subscription handling fee, application handling fee, custody fee, dormant account fee, transfer-in fee, transfer-out fee, interest collection handling fee, early redemption fee, and maturity redemption fee. Currently, customers who successfully open an account can also enjoy up to$1,600 Welcome Bonus！