Hong Kong’s Hang Seng Bank saw its shares rise nearly 30% after HSBC, its majority shareholder, announced plans to take the bank private in a deal valuing Hang Seng at over HK$290 billion. HSBC, which owns about 63% of the bank, has proposed paying HK$155 per share—around 33% above the recent average price.
If approved, Hang Seng would be delisted from the Hong Kong Stock Exchange and become a wholly owned subsidiary of HSBC Asia Pacific. HSBC’s Group Chief Executive Georges Elhedery said the offer represents “an exciting opportunity to grow both Hang Seng and HSBC.”
He emphasised maintaining Hang Seng’s brand and customer focus while investing in new products, services, and technology. The deal demonstrates HSBC’s confidence in Hong Kong as a key global financial centre and a vital bridge to mainland China.
This privatisation move aims to simplify HSBC’s Hong Kong operations and create a stronger combined platform, allowing customers to benefit from the strengths of both banks. HSBC believes this strategy will deliver greater shareholder value than alternative uses of capital.
Hang Seng has struggled financially, with profits down 30% in the first half of 2025 due to rising credit provisions linked to the troubled property market in Hong Kong and mainland China. Non-performing loans increased to 6.69% of total loans by mid-2025. However, the bank has boosted fee income through growth in wealth management services.
Analysts, including Morningstar’s Michael Makdad, view the privatisation as a sensible resolution to governance complexities from dual listings that have long challenged the parent-subsidiary relationship.
HSBC plans to complete the deal by mid-2026, subject to shareholder and regulatory approvals. The move displays a major commitment by HSBC to strengthen its role in Hong Kong’s financial sector amid ongoing economic challenges and growth opportunities in the region.