HANG SENG BANK(HK:00011) Xin Lang Cai Jing·2025-10-10 18:06Core Viewpoint - HSBC Holdings announced a plan to privatize Hang Seng Bank at a premium of over 30%, leading to a significant increase in Hang Seng Bank's stock price by 25.88% on the announcement day, highlighting a surge in interest in privatization activities in the Hong Kong stock market [1][2]. Group 1: Privatization Trends - There have been over 20 privatization-related cases in the Hong Kong stock market this year, spanning various sectors including finance, real estate, and consumer goods [1]. - The privatization proposal for Hang Seng Bank is considered a major event in the market, with HSBC planning to buy out its approximately 63% stake at HKD 155 per share, representing a total transaction value of approximately HKD 166 billion [2]. - Other companies, such as Changhong Jiahua and Joy City Property, have also announced privatization plans, with significant stock price increases following their announcements [3]. Group 2: Market Reactions - The stock price of Hang Seng Bank reached a new high since 2019, peaking at HKD 168 during trading on the announcement day [2]. - Joy City Property's privatization plan included a buyback at a price that represented a 67.57% premium over its last trading price, resulting in a 45.95% increase in its stock price after the announcement [3]. Group 3: Completed Privatizations - A total of 21 companies have been delisted from the Hong Kong stock market due to privatization this year, with many experiencing significant stock price recoveries prior to their delisting [4]. - Beijing Construction's privatization led to a 220% increase in its stock price after the announcement, despite its previous low trading range [4]. - Fosun Tourism Culture announced its privatization plan at a price that represented a 95% premium over its stock price before suspension, successfully completing the process within three months [5][6]. Group 4: Challenges in Privatization - Not all privatization proposals succeed; for instance, the privatization attempt by Goldlion Group failed due to insufficient shareholder support, resulting in a 33.78% drop in its stock price upon resumption of trading [7]. - The privatization plan of Daisan Creation also failed, leading to a 27.30% decline in its stock price on the day of resumption [7]. - In contrast, the stock price of WuXi Biologics fell only 7.95% after its privatization proposal was rejected, indicating a relatively stable market reaction [8].