science

HIBOR

HIBOR is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand HIBOR rather than just read about it. In short: Hong Kong Inter-bank Offered Rate (HIBOR; Chinese: 香港銀行同業拆息) is the annualized rate charged for inter-bank lending on Hong Kong Dollar (HKD) denominated instruments, for a specified period ranging from overnight to one year. It is calculated daily at 11:00 a.m. local time based on quotations from 20 banks designated by the Hong Kong Association of Banks (HKAB).

Key takeaways

HIBOR belongs to science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect HIBOR to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of HIBOR from memory before moving on to harder problems.

Reference excerpt

Hong Kong Inter-bank Offered Rate (HIBOR; Chinese: 香港銀行同業拆息) is the annualized rate charged for inter-bank lending on Hong Kong Dollar (HKD) denominated instruments, for a specified period ranging from overnight to one year. It is calculated daily at 11:00 a.m. local time based on quotations from 20 banks designated by the Hong Kong Association of Banks (HKAB). On 24 June 2013, an additional fixing was launched for off-shore Chinese renminbi (CNH), designated as CNH HIBOR.

Definition In Hong Kong, HIBOR is officially called the "Hong Kong Dollar Interest Settlement Rates". It is defined in the Guide to Hong Kong Monetary, Banking and Financial Terms as "The rate of interest offered on Hong Kong dollar loans by banks in the interbank market for a specified period ranging from overnight to one year." HIBOR is fixed by the Hong Kong Association of Banks (HKAB) by reference to market rates for HKD deposits in the Hong Kong interbank market. These fixings are usually released on the website of the HKAB each business day (excluding Saturdays) at 11:15 a.m., on the basis of quotations provided by 12 to 20 banks designated by the HKAB. HIBOR calculated by averaging the middle quotes after excluding the highest three quotes and lowest three quotes received from the reference banks.

Worked examples

Example 1 — a first encounter with HIBOR

Start with the simplest possible case. Write down what HIBOR claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to HIBOR before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about HIBOR ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of HIBOR

In research: HIBOR appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses HIBOR in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: HIBOR is common in secondary-school and first-year university syllabi. It links to neighbouring topics Bank stubs, Finance in Hong Kong, Finance stubs, so understanding it makes those chapters shorter.
In everyday life: Look for HIBOR outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study HIBOR in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what HIBOR means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain HIBOR out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is HIBOR in simple terms?

Why does HIBOR matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study HIBOR?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on HIBOR.