Sou Hu Cai Jing·2026-01-09 02:01Core Viewpoint - HSBC Holdings has successfully obtained approval for the privatization of Hang Seng Bank, which will become a wholly-owned subsidiary of HSBC by January 26, 2026, marking the end of Hang Seng Bank's 53 years of public trading since its listing in 1972 [1][2]. Group 1: Privatization Approval - The privatization proposal was publicly announced on October 9, 2025, with HSBC Asia Pacific offering HKD 155 per share for the privatization [2]. - During the court meeting, approximately 237 million shares (85.75% of voting rights) voted in favor, while 39.3 million shares (14.25%) voted against [2]. - The special resolution related to the privatization received a 97.30% approval rate at the shareholders' meeting [2][3]. Group 2: Timeline and Stock Status - The expected delisting of Hang Seng Bank from the Hong Kong Stock Exchange is set for January 27, 2026, with trading expected to cease on January 14, 2026 [3][4]. - Share transfer registration will be suspended starting January 20, 2026, and no share transfers will be processed during this period [4]. Group 3: Financial Context and Strategic Considerations - Concerns have been raised regarding Hang Seng Bank's increasing credit impairment in commercial real estate loans, which reached HKD 25.012 billion as of June 2025, a 26% increase from the previous period [5]. - HSBC's CEO has stated that the privatization is a strategic business decision aimed at demonstrating confidence in Hong Kong's future and is not directly related to the bank's bad debt situation [5]. - Post-privatization, Hang Seng Bank will retain its banking license, corporate governance, brand image, market positioning, and branch network [5].