Rising interest rates undermine retail notes in Hong Kong, says SFC
Rising interest rates may have dampened investors' appetite for retail structured notes, causing the market to shrink, according to a report by Hong Kong’s Securities & Futures Commission (SFC), the territory’s securities industry watchdog.
In the 12 months ending June, a total of 147 retail structured notes were issued, with an aggregate issue size of HKD$9.76 billion (USD$1.25 billion). Although the number of notes issued rose by 53%, the issue size decreased by 52% compared to the 175% increase a year ago.
The report notes that the rebounding volatilities of the Hang Seng Index (HSI), Hong Kong’s stock market index, and major
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