Mei Ri Jing Ji Xin Wen·2026-01-09 02:12Core Viewpoint - HSBC Holdings plans to privatize Hang Seng Bank, which has been publicly traded for 53 years, with the privatization expected to take effect on January 26, 2026, and the bank's listing on the Hong Kong Stock Exchange to be canceled on January 27, 2026 [1][2][10]. Privatization Approval - The privatization plan received overwhelming support at the court meeting and shareholders' meeting, with approximately 85.75% of the voting rights in favor and 14.25% against [4][12]. - The special resolution related to the privatization achieved a 97.30% approval rate [4][12]. Financial Details - HSBC Asia Pacific offered HKD 155 per share as the cash consideration for the privatization [3][11]. - As of January 8, Hang Seng Bank's share price was HKD 153.9, only HKD 1.1 below the proposed acquisition price [7][15]. Index Removal - Following the approval of the privatization plan, Hang Seng Bank will be removed from various indices, including the Hang Seng Index, effective January 14, 2026 [2][10]. Brand and Operations - Post-privatization, Hang Seng Bank will retain its brand, branch network, and independent banking license under Hong Kong banking regulations, maintaining its corporate governance and market positioning [8][16]. Market Context - Concerns have been raised regarding Hang Seng Bank's increasing bad debts in the real estate sector, with credit impairment for commercial real estate loans reaching HKD 250.12 billion, a 26% increase from six months prior [9][16]. - HSBC's CEO has stated that the privatization is a strategic decision unrelated to the bank's bad debt situation, reflecting confidence in Hong Kong's future [9][16].