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All debt securities traded on SEHK are bought and sold at a “clean price”, meaning that the trade price is exclusive of accrued interest. As such, there will NOT be any price adjustment for debt securities after coupon payment.
When bonds are being traded in the secondary market, interest due from the last interest payment date to the settlement date, or in the case of a transaction that is settled before the first interest payment date, from the issue date to the settlement date, is normally paid to the bond seller from the bond buyer. The amount of interest to be paid is calculated in the same manner as an interest payment.
If the transaction is settled before the first interest payment date, the applicable per annum interest rate is the one announced by the HKSAR Government in advance. This rate is determined based on the higher of the Fixed Rate or relevant Floating Rate of the relevant bond. Please note that this is not the actual per annum interest rate for the first interest payment date.
If the transaction is settled after the first interest payment date, the per annum interest rate used in calculating the accrued interest will be that of the immediate preceding interest payment date.
Accrued interest involved in secondary trading of bonds can be found here.
Useful Website:
https://www.hkgb.gov.hk/en/greenbond/retail_Key.html