BPI Bank launches bonds on Chinese and Hong Kong companies in Portugal

15 June 2006

Lisbon, Portugal, 15 June – Portuguese bank, Banco Português de Investimento (BPI) is selling in Portugal three-year bonds on shares in Chinese state companies listed on the Hong Kong stock exchange and the Hang Seng índex.

The “BPI CS China Plus 2006-2009,” according to the issue prospectus published this month, are aimed at “investors without the need for short term liquidity, who are looking to profit from investments through exposure to Chinese share indices, benefiting from the high potential Chinese growth and the integration of Asian economies.”

The set of indices is made up, in equal parts, of the Hang Seng China Enterprises, which includes state-owned companies listed in Hong Kong, and by the Hang Seng Index, the administrative region’s main market index.

This index is made up of 33 companies, which altogether represent 70 percent of the market capitalization.

“Chinese and Hong Kong companies have enormous potential to increase in value, due to the growth of the economy over the last few years, which is expected to continue in the future, as well as great potential for growth of internal demand and investment in infrastructures,” BPI said.

Since January 2000, it added, gains made by a fund with the characteristics of BPI CS China Plus, was a maximum of 17.95 percent, a minimum of 0.98 percent and 9.05 percent on average.

The subscription period for the bonds ends on July 5, and liquidation is scheduled for July 11.

The bonds will reach maturity in October 2009, and the capital initially invested is guaranteed. (macauhub)