$13.6 Billion Offer: HSBC Seeks Full Control of Hong Kong’s Hang Seng Bank

Swaraj

Published on October 13, 2025

HSBC has launched an ambitious offer to buy out the remaining minority interest and delist its Hong Kong subsidiary, Hang Seng Bank, from the local exchange. Valued at HK$106.1 billion (roughly USD 13.6 billion), the plan revealed on October 9, 2025, values the outstanding shares not yet owned by HSBC, therefore suggesting a full appraisal of almost HK$290 billion.

Following the strategy of SoftBank Group to invest $2 billion in Intel stocks, HSBC would buy the 36.5% of Hang Seng Bank not already owned for HK$155 per share, an over premium, 30% higher than current trading levels. Hang Seng will be delisted from the Hong Kong Stock Exchange upon its closing. HSBC’s executives see the deal as a vote of confidence in Hong Kong’s future. In a statement, the bank underlined that this decision “underscores our belief in the development potential” of Hang Seng as well as of its wider Asia-Pacific operations.

Furthermore, promising to keep the Hang Seng Index alive, preserve its licensed bank status in Hong Kong, and retain its current branch network, HSBC said. HSBC’s capital indicators are expected to come under immediate pressure from the agreement. On day one, management expects its common equity tier 1 (CET1) ratio to drop by around 125 basis points. To lessen the effects, HSBC intends to stop share buybacks for three quarters and count on organic capital generation to help restore its target with a CET1 range of 14.0 to 14.5%.

Market responses were rapid and severe. Following the announcement to privatise Hang Seng Bank, HSBC’s shares dropped around 6%, while the Hang Seng’s stock jumped about 26%. Analysts reacted with modest optimism, pointing out that investor attention would center on the timing and value, even if the strategic thinking is persuasive. For HSBC, the deal would represent one of the most ambitious relocations of capital in recent years, a break from past trends of asset sales and reorganization. Having promoted simplification throughout the group, Georges Elhedery views this as a chance to integrate Hang Seng Bank more closely into HSBC’s international system.

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