FINANCE

Hang Seng Bank’s Stock Soars on HSBC’s Plan to Take It Private

Published: Oct. 9, 2025 6:54 p.m. GMT+8

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HSBC has proposed taking Hang Seng Bank private in a more than $13 billion deal.

Shares of Hang Seng Bank Ltd. jumped by nearly 26% Thursday after the announcement that its controlling shareholder HSBC Asia Pacific plans to take the Hong Kong-based lender private in a HK$106 billion ($13.6 billion) deal.

HSBC Asia Pacific, which already holds around 63% of Hang Seng Bank, has proposed buying the remaining shares for HK$155 apiece, about 30% above its closing price Wednesday, according to HSBC Asia Pacific’s proposal released early Thursday.

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Hang Seng Bank shares rose nearly 26% after HSBC Asia Pacific proposed a HK$106 billion ($13.6 billion) buyout at HK$155 per share, a 30% premium.
HSBC Asia Pacific, already holding 63% of Hang Seng, aims to take it fully private, pending regulatory approval; HSBC Holdings PLC’s share price fell 6% on the news.
Hang Seng faces rising nonperforming loans (6.7%) due to Hong Kong real estate, with credit-impaired loans growing to HK$25 billion by June.

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Who’s Who

Hang Seng Bank Ltd.: Hang Seng Bank Ltd. is a Hong Kong-based lender whose shares jumped nearly 26% following a privatization proposal from its controlling shareholder, HSBC Asia Pacific. HSBC Asia Pacific, which owns 63% of the bank, plans to take it private in a $13.6 billion deal due to bad debt issues in Hong Kong commercial real estate.

HSBC Asia Pacific: HSBC Asia Pacific, a wholly-owned subsidiary of U.K.-based HSBC Holdings PLC, proposes to take Hang Seng Bank Ltd. private in a HK$106 billion deal. It currently holds about 63% of Hang Seng Bank and intends to acquire the remaining shares. This will make Hang Seng Bank a wholly-owned subsidiary, aligning with HSBC Holdings' strategy for growth and shareholder value.

HSBC Holdings PLC: HSBC Holdings PLC is the U.K.-based parent company of HSBC Asia Pacific, which is proposing to take Hang Seng Bank Ltd. private. Following the announcement of the proposal, HSBC Holdings PLC's share price in Hong Kong was down around 6%. Its CEO, Georges Elhedery, stated the proposal aligns with their strategy and enhances shareholder value.

East Asia Securities Co. Ltd.: East Asia Securities Co. Ltd. is where Bosco Wu, an investment strategist, works. Wu commented that Hang Seng Bank Ltd.'s share price was impacted by bad debt in Hong Kong's commercial real estate market, which he believed would not be quickly resolved. He also stated that shareholders would likely approve the privatization proposal.

Morningstar Research Pte. Ltd.: Morningstar Research Pte. Ltd. is represented by Michael Makdad, a senior equity analyst. Makdad commented on the proposed privatization of Hang Seng Bank, calling it a "positive and long-overdue move" and noting that he views parent-subsidiary double listings as "inherently problematic" for governance.

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