HSBC to Acquire Remaining Hang Seng Shares in $14 Billion Hong Kong Expansion Move

HSBC Holdings Plc has announced a $14 billion plan to fully acquire Hang Seng Bank Ltd., reinforcing its confidence in Hong Kong as a financial hub. The deal will give HSBC complete ownership of the 91-year-old bank, which it already controls with a 63% stake.

Under the proposal, HSBC will pay HK$155 per share to acquire the remaining 37% stake it doesn’t yet own, valuing Hang Seng Bank at roughly $37 billion. The offer represents a 30% premium over Hang Seng’s Wednesday closing price and marks one of the largest banking deals in the region in recent years. 

Following the announcement, Hang Seng Bank’s shares surged 26% to HK$149.40, while HSBC’s stock dropped as much as 7% in London trading. Its sharpest intraday fall in six months. HSBC said it will suspend share buybacks for the next three quarters to maintain its capital ratio.
HSBC Chief Executive Georges Elhedery said the move offers greater long-term value than buybacks and reflects the bank’s ongoing strategy to deepen its roots in Asia. He emphasized that the acquisition is focused on growth, not on Hang Seng’s rising exposure to bad real estate loans, which reached HK$25 billion by mid-2025.

Analysts remain divided on the deal’s valuation, with some viewing the premium as steep. However, others note that the buyout could streamline governance and strengthen HSBC’s regional operations.

Following the acquisition, Hang Seng will continue operating under its own name and license while gaining broader access to HSBC’s global network. Elhedery reaffirmed that HSBC will continue to invest in people and growth in Hong Kong, signaling the lender’s enduring commitment to its most profitable market.