<div id="readability-page-1">Hong Kong’s banking sector is set for a landmark transformation as thousands of Hang Seng Bank shareholders vote on HSBC Holdings’ bid to take the lender private on Thursday morning.\nAnalysts expected an overwhelming approval for the proposal, which offers shareholders HK$155 a share – 30 per cent higher than Hang Seng Bank’s HK$119 closing price on the last trading day before the announcement on October 9. Since then, HSBC has risen 15 per cent to close at HK$127.20 on Wednesday, on the eve of the vote, while Hang Seng Bank has edged up 29 per cent to HK$153.80.\nThe proposal by HSBC, which already owns 63 per cent of Hang Seng Bank, requires backing from at least 75 per cent of independent shareholders, with opposition from no more than 10 per cent of the 662.3 million shares they hold.\n“I believe the chance for a successful privatisation deal is sky-high,” said Mike Leung Kit-man, director of Wocom Securities. “Given that Hong Kong’s commercial real estate market remains sluggish, being able to sell shares at this price is unlikely to face much opposition from Hang Seng’s shareholders.”\n\nHang Seng Bank’s shareholders included banks, investment advisers, pension funds and individual investors, accounting for 89.5 per cent, 10 per cent, 0.4 per cent and 0.1 per cent of ownership, respectively, according to Bloomberg data. More than 89 per cent of the shareholders are based in Hong Kong, followed by 6.1 per cent in the US and 1.1 per cent in Norway, with investors from other regions each holding less than 1 per cent. It had 15,544 shareholders at the end of 2024, according to the bank’s annual report.\nInstitutional support appears solid. Norwegian government pension fund manager Norges Bank Investment Management, which holds a 0.8 per cent stake, intended to vote in favour, according to a disclosure on its website.\nCharles Cheng Kai-ming, a shareholder, said he would vote in favour because of the attractive price. He holds 10,000 shares and will get HK$1.55 million (US$190,000) from the deal.\nThe 79-year-old investor said ahead of the vote that he was slightly worried about the bank’s bad debt and believed it would do better as a wholly owned subsidiary of HSBC.\n“With the backing of HSBC, Hang Seng Bank would be in a better situation to manage its business and provide more new products,” Cheng said, adding that the privatisation would help to save operational costs and provide synergy between the two lenders.\nOnce the privatisation is approved, Hang Seng Bank will be removed from its namesake stock index after the market close on January 14, ending a blue-chip tenure dating back to 1972. January 14 will also be the last trading day for Hang Seng Bank’s shares, with their delisting from the Hong Kong stock exchange taking place after the market close on January 27.\nCecilia Ko, a former senior executive who worked at Hang Seng Bank from 1994 to 2008 and a shareholder, is distressed about the bank’s delisting. She does not plan to vote on Thursday, as she expected the deal would be approved.\nKo said institutional investors were value-driven and likely to back the privatisation, given the high offer price and the bank’s outlook, noting Hang Seng’s substantial bad debt provisions for its commercial real estate portfolio.\n“It is certainly a loss to delist Hang Seng Bank, a valuable blue chip for half a century,” Ko said ahead of the vote. “I feel sad, both as an ex‑executive and as a small shareholder. The unique Hong Kong Chinese culture of Hang Seng Bank and its brand will probably fade away after it becomes a part of HSBC, like a dying star.”\nIn October, HSBC announced a US$14 billion bid to buy out Hang Seng Bank, a deal its CEO Georges Elhedery billed as an investment for growth, rejecting suggestions it was driven by Hang Seng’s high level of bad debt.\nHang Seng’s credit-impaired real estate loans surged 85 per cent year on year to HK$25 billion as of June 2025, with its bad loans rising to 6.7 per cent of total lending.\nHSBC said that taking Hang Seng Bank private would simplify its Hong Kong structure, allow greater investment in the lender and leverage both brands’ relative strengths and competitive advantages.\nThe group would “continue to invest in headcount in Hong Kong”, Elhedery said at the time. HSBC also told the Hong Kong government it would invest billions of dollars in the city over the next few years and would not lay off staff during the privatisation, according to Financial Secretary Paul Chan Mo‑po in October.\nHang Seng Bank, which traces its roots to Hang Seng Ngan Ho in 1933, would retain its brand, branch network, board and banking licence under Hong Kong’s banking ordinance and its value proposition for customers, HSBC said.\n</div>

HSBA

HSBC

00005

00011

<p>Hang Seng Bank shareholders are expected to approve HSBC's plan to take the bank private, offering HK$155 per share, significantly above its recent trading price. HSBC, which already owns 63% of Hang Seng, needs 75% approval from independent shareholders. Analysts predict strong support due to the attractive offer amidst a sluggish real estate market. If approved, Hang Seng will be delisted from the stock exchange on January 27, ending its blue-chip status since 1972. HSBC aims to simplify its structure and invest in the bank, assuring no layoffs during the transition.</p>

- Hong Kong’s banking sector is undergoing a significant change as Hang Seng Bank shareholders vote on HSBC Holdings’ plan to take the bank private for HK$155 a share.  
- HSBC, which already owns 63 percent of Hang Seng, requires support from at least 75 percent of independent shareholders, with a successful deal expected given the attractive offer and investor sentiment.  
- If approved, Hang Seng Bank will be delisted from the Hong Kong stock exchange by January 27, marking the end of its blue-chip status established in 1972.

Hang Seng Bank shareholders set to back HSBC’s privatisation plan for Hong Kong lender