HSBC proposes to privatize subsidiary Hang Seng Bank, valuing it at over $37 billion

Two HSBC bank logos are displayed on an office building in Mexico City, Mexico, July 25, 2025.

Henry Romero | Reuters

HSBC on Thursday announced it has proposed to privatize Hang Seng Bank, in which it holds a controlling stake, valuing the bank at more than 290 billion Hong Kong dollars ($37 billion).

HSBC has asked Hang Seng Bank’s board to put forward a privatization proposal to shareholders via a scheme of arrangement under Hong Kong’s Companies Ordinance.

Shares in Hang Seng Bank would be canceled in exchange for 155 Hong Kong dollars apiece. HSBC owns around 63% of Hang Seng Bank, pegging the deal value at HK$106 billion.

The offer allows for adjustments reflecting any dividends declared after the announcement date, except Hang Seng’s third interim dividend for 2025.

HSBC said the entire transaction would be financed from internal resources and that it expects the deal to be add to its earnings.

“One of HSBC’s strategic priorities is to grow in Hong Kong,” the bank said in its filing statement, adding that it believes it is “best positioned” to do so by strengthening the Hong Kong banking presence of both HSBC Asia Pacific and Hang Seng Bank.

Hang Seng Bank is a core regional unit for London-based HSBC, with a substantial presence in the Hong Kong banking industry.

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