The third batch of HK$ 10 billion inflation-linked bonds is proving a sell-out despite low inflation, with investors piling into the risk-free product in a sluggish market.

The number of subscribers jumped by 40 to 50 per cent from last year at major banks such as HSBC, Bank of China (Hong Kong), Bank of Communications’ Hong Kong branch and DBS as they started taking orders for the so-called iBonds yesterday. The rise was more significant at smaller banks due to a lower base, with China Citic Bank International seeing more than double the applicants from last year.