The government's inflation-linked bonds have attracted orders of as much as HK$50.2 billion - almost three times more than the previous issue - after Hongkongers rushed to place their money in the less volatile investment.
Concluding the seven-day subscription period yesterday, the government said about 330,000 people subscribed to the iBond, more than double the number last year.
The government plans to issue iBonds worth just HK$10 billion.
Market watchers expect orders of less than HK$30,000 or HK$40,000 to be fully filled.
Assuming a value of HK1.05 on the dollar at debut, subscribers can pocket profits of HK1,500 to HK$2,000 - before costs.
For those who intend to hold the bonds for the three years until maturity, the government pays interest every half year with payouts tracking the annual inflation rate, which is expected to be 3.5 percent this year, subject to a floor of an annualized 1 percent.
Many banks said they saw a jump in subscriptions.
Eric Fu, HSBC head of wealth development for Hong Kong, said the overwhelming response can be in part attributed to the good investment return of the first offer last year.
"The low interest rate environment and the fact that it's a relatively low risk investment make iBonds an attractive option for investors," he said.
HSBC, Hang Seng Bank and Wing Hang Bank said they received four times more subscriptions than last year.
Felix Lau, CITIC Bank International general manager of wealth management, said each applicant may be allocated less than 10 board lots (HK$100,000) of iBonds on average amid positive market response.
With many subscriptions to be returned to customers, some banks are making use of the opportunity for business. Dah Sing Bank announced its customers can use their returned orders to subscribe to its fund bonds with subscription fees waived.
The government will announce allotment results next Thursday. The bond starts trading on June 25.