End of an era: Hang Seng Bank to leave Hang Seng Index after 53 years if buyout passes

Hang Seng Bank will be removed from the Hang Seng Index after the close on January 14 if shareholders approve HSBC’s privatisation plan next week, ending the lender’s blue-chip run that dates back to 1972.\nHang Seng Indexes, the index compiler and a unit of Hang Seng Bank, on Tuesday set out the timetable for changes across the benchmark index and other key gauges triggered by the proposed buyout.\n“It is a shame to see Hang Seng Bank removed from the benchmark index named after the bank. It has been one of the darling stocks for retail investors over the past 53 years,” said veteran broker Christopher Cheung Wah-fung, founder and chief executive of Christfund Securities.\n“We will soon enter an era of Hang Seng Index without Hang Seng Bank. However, I do not think the privatisation and delisting of Hang Seng Bank will have a big impact on the stock market or the benchmark index,” Cheung said. “HSBC is likely to continue to support Hang Seng Bank and also the index compiler in future.”\nHSBC will hold a court meeting and a general meeting of Hang Seng Bank shareholders from 10.30am on January 8 in Hong Kong to vote on its proposed HK$155-per-share offer, a deal valued at about US$14 billion and unveiled on October 9.\nBrokers expect the scheme to pass, citing the 30 per cent premium to Hang Seng Bank’s HK$119 closing price on the last trading day before the announcement. If approved, the lender will be delisted after its final trading session on January 14.\n\n“Subject to the relevant approvals being obtained, and based on the current timetable outlined in the scheme document, Hang Seng Bank Limited will be removed from the following indexes and sub-indexes after market close on January 14, 2026, at its closing price,” the index compiler said in a statement.\nHang Seng Bank will not be replaced in the Hang Seng Index, reducing the number of constituents to 87. Other indexes will see changes, including MMG joining the Hang Seng HK35, while CK Asset Holdings will replace the lender in the Hang Seng (Mainland and HK) Corporate Sustainability Index.\n“Hang Seng Bank is the founder of the Hang Seng Index, but its removal would not have a big impact as the lender has only a 0.7 per cent weighting,” said Tom Chan Pak-lam, permanent honorary president of the Institute of Securities Dealers.\n“The Hang Seng Index has been well established for over half a century, so its status as the local market benchmark will not be affected by the delisting of its founder,” he added.\nHang Seng Bank introduced the Hang Seng Index in 1969 with 33 constituents to track local share performance. The lender was added to the benchmark on July 3, 1972, about a month after its own listing, according to Hang Seng Indexes data.\nFounded on March 3, 1933, by four Chinese businessmen including Lam Bing-yim and Ho Sin-hang, Hang Seng Bank came under HSBC control in 1965 when the British lender bought a 51 per cent stake during a bank-run crisis. HSBC’s stake later rose to 62.14 per cent.\nHang Seng Bank shares closed at HK$153.60 on Tuesday, unchanged from a day earlier.\n