HONG KONG, June 2 (Reuters) - HSBC (HSBA.L: Quote, Profile, Research)(0005.HK: Quote, Profile, Research) said on Monday it had launched Hong Kong's first authorised emerging markets inflation-linked bond fund, in the latest sign rising inflation is becoming a concern in the high growth region.

Europe's biggest bank said the new fund launched by its HSBC Global Asset Management arm would invest primarily in inflation-linked bonds issued by the emerging governments and quasi-government institutions.

With conventional bonds, principal repaid upon maturity does not change and its value can be eroded by inflation. Inflation-linked bonds have their principal indexed to inflation, ensuring principal and coupon payments will increase over time in an inflationary environment.

Managed by HSBC's SINOPIA quantitative investment specialist unit, the fund will invest in bonds from markets including Brazil, Chile, Colombia, Mexico, Poland, South Korea, South Africa and Turkey.

The fund manager said emerging markets inflation-linked bonds denominated in local currencies would also benefit from the potential appreciation of local currencies. However, weakness in these local currencies would cut returns.

The product is authorised by Hong Kong regulators, meaning it can target retail investors. HSBC said the fund, which is available until June 20, would include an initial sales charge of 5.25 percent.

"Despite slowing global growth, economic growth and inflationary pressure remain strong in emerging markets, with expected growth and inflation rates of 7 percent and 6.6 percent respectively," Patrice Conxicoeur, chief executive of SINOPIA Asset Management Asia Pacific, said in a statement.

"We aim to offer people an investment tool to capitalise on rising inflation and the strong economic growth potential in emerging markets."

HSBC's chief executive last month called on central bankers to raise interest rates in order to combat inflation and warned rising prices were a long-term problem.