Mei Ri Jing Ji Xin Wen·2026-01-09 07:34Core Viewpoint - HSBC Holdings has successfully passed the privatization plan for 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 Details - The privatization proposal offers HKD 155 per share, with a total cash payout of approximately HKD 106.156 billion to shareholders if the plan is executed [2]. - During the court meeting, approximately 237 million shares (85.75% of voting rights) voted in favor of the privatization, while 39.3 million shares (14.25%) voted against it. The special resolution at the shareholders' meeting received a 97.30% approval rate [2][3]. - The expected delisting of Hang Seng Bank from the Hong Kong Stock Exchange will occur on January 27, 2026, with trading expected to cease on January 14, 2026 [3][4]. Group 2: Market Context and Financials - As of January 9, 2026, Hang Seng Bank's stock price was HKD 154.3, only slightly below the proposed acquisition price of HKD 155, with a total market capitalization of HKD 289 billion (approximately RMB 258.8 billion) [4]. - 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 30, 2025, a 26% increase from six months prior [6]. - 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 [6]. Group 3: Operational Continuity - Post-privatization, Hang Seng Bank will retain its independent banking license, corporate governance, brand image, unique market positioning, and branch network as per Hong Kong banking regulations [6].