In response to an article on bonds published in a newspaper today, the Government clarified tonight that Financial Secretary Henry Tang was referring to the possibility of issuing asset-backed bonds or convertible bonds with respect to the government-owned asset disposal programme, when he spoke on the issue.

The final arrangement to be adopted in any government asset disposal exercise will be determined on a case-by-case basis and the objective is to maximise the value of the government asset.

In the article, Mr Tang said issuing bonds is a serious possibility, adding that the Government is considering several ways to tap the debt market including straight and convertible bonds as well as "other kinds of derivatives".

Issuing a bond will enhance the entire bond market and proceeds will go toward paying down the budget deficit or infrastructure development.