93-year-old Hang Seng Bank bids farewell to Hong Kong stocks!

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Hang Seng Bank, with nearly 93 years of history, is about to bid farewell to the Hong Kong stock market.

This iconic Hong Kong-listed company, founded in 1933 and acquired by HSBC in 1965, will officially terminate its listing status later this month, ending over 53 years as a public company.

On January 8, HSBC Holdings and Hang Seng Bank jointly announced that HSBC's proposal to privatize Hang Seng Bank was approved by shareholders. At the shareholders' meeting, 97.30% voted in favor of the special resolution related to privatization. At the court meeting, 85.75% of participating voting rights supported the proposal.

According to the relevant timetable, Hang Seng Bank shares are expected to be delisted at 4 PM on January 27, with the last trading day being January 14. This means that for ordinary investors in the Hong Kong market, six days from now will be the "farewell" day to Hang Seng Bank's status as a Hong Kong-listed company.

After Hang Seng Bank is delisted, it will also be removed from several indices such as the Hang Seng Index. This bank, which has close ties to the Hang Seng Index—the latter being created by the bank in 1969 and compiled and managed by its wholly-owned subsidiary Hang Seng Indexes Company—will completely exit this Hong Kong economic barometer.

Listed for 53 Years

Hang Seng Bank is a longstanding Hong Kong bank, established on March 3, 1933, by five founders including Lam Bing-yim and Ho Sin-hang. It is one of Hong Kong's leading local banks, consistently known for outstanding personal, commercial banking, and wealth management services, with a substantial service network in Hong Kong and mainland China.

Hang Seng Bank has been listed for over 53 years and is now a member of the HSBC Group. This privatization proposal was also initiated by HSBC.

According to the joint announcement by HSBC Holdings and Hang Seng Bank, on January 8, HSBC's proposal to privatize Hang Seng Bank was approved by the shareholders’ meeting. At the court meeting, 85.75% of participating voting rights supported the proposal; at the shareholders’ meeting, the special resolution related to privatization received 97.30% approval.

There has been much speculation externally about the real reasons for Hang Seng Bank's delisting. However, HSBC management emphasized that the privatization is purely based on strategic considerations. HSBC has committed to retaining Hang Seng as an independent licensed bank, maintaining its independent corporate governance, brand image, and branch network.

HSBC Took Over 60 Years Ago

Hang Seng Bank's relationship with HSBC began with the Hong Kong banking crisis in 1965. That year, a large-scale bank run erupted in Hong Kong, causing Hang Seng Bank to face liquidity difficulties due to massive deposit outflows. After founder Ho Sin-hang convened a board meeting, it was decided to transfer controlling interest to HSBC.

On April 12 of the same year, HSBC acquired 51% of Hang Seng for HK$51 million, later increasing its stake to 62.14%, thus calming the bank run. This crisis changed Hang Seng’s fate—a major Chinese capital bank in Hong Kong founded by Lam Bing-yim, Ho Sin-hang, and others in 1933 became a member of the British-capital HSBC Group from then on. Yet Hang Seng continued independent operations and went public on the Hong Kong Stock Exchange in June 1972.

As one of the four major banks in Hong Kong, Hang Seng ranks third in deposits locally and currently serves nearly 4 million customers, with a substantial service network in Hong Kong and mainland China and a wholly-owned subsidiary Hang Seng Bank (China) Limited.

Privatization at HK$155 per Share

On October 9, 2025, HSBC Holdings, The Hongkong and Shanghai Banking Corporation Limited, and Hang Seng Bank jointly announced that HSBC would privatize Hang Seng Bank via a scheme of arrangement in accordance with the Hong Kong Companies Ordinance. The proposed price is HK$155 per share, representing a premium of about 33% over the average closing price of HK$116.49 in the 30 trading days prior to the announcement.

The voting results on January 8 showed overwhelming support. At the court meeting, holders of 237 million scheme shares voted in favor, with only 39.3 million shares opposed. According to the plan, Hang Seng Bank will suspend share transfer registration starting January 20 to determine shareholders eligible for scheme consideration.

The market had speculated that the privatization was related to Hang Seng’s operational performance. Hang Seng Bank's 2025 interim report showed that the non-performing loan ratio for the first half was 6.69%, up 1.37 percentage points from the same period in 2024. As of the end of June 2025, total impaired loans were HK$55 billion. According to previous media reports, HSBC tightened risk management over Hang Seng at the beginning of 2024.

New Chairman Just Six Months Ago

It is noteworthy that there have been significant personnel changes since last year.

On February 19, Hang Seng Bank announced that Chairperson Rosanna Lee would step down after the conclusion of the 2025 annual general meeting in May, ending her roughly 11-year tenure on the board.

Clement Cheng, then Vice Chairman and CEO of Wing Tai Properties Limited, was announced as the new chairman. Clement Cheng will serve as an independent non-executive director of Hang Seng Bank from April 1, 2025.

With this, the “helm” of Hang Seng Bank passed from the Lee family’s fourth-generation leader Rosanna Lee to Clement Cheng, who has deep connections with both Wharf Holdings and HSBC.

Additionally, according to an announcement today by the Shanghai Office of the National Financial Regulatory Administration, Lin Huihong was approved to assume the role of Chairperson of Hang Seng Bank (China) Limited. This Hang Seng Bank subsidiary also has a new “captain.”

Index Founder Exits Hang Seng Index

Hang Seng Bank’s delisting also means its departure from the Hang Seng Index, which it created. As a representative index of the Hong Kong market, the Hang Seng Index has long been seen as a barometer for the local stock market and economy.

Reportedly, the index was launched by Hang Seng Bank in 1969, created by then Head of Research Stanley Kwong, to reflect the performance of the Hong Kong stock market. The compilation, calculation, and constituent changes of the Hang Seng Index are handled by Hang Seng Indexes Company, wholly owned by the bank.

Hang Seng Indexes Company previously stated that if the privatization proposal is approved, Hang Seng Bank will be removed from the Hang Seng Index, Hang Seng Composite Index, and several other constituents after market close on January 14, with the changes effective from January 15. This bank, closely linked to the index—as its founder, parent, and a constituent stock—will completely exit this key economic indicator for Hong Kong.

Although Hang Seng Indexes Company, as an independent index compiler, manages professional operations, Hang Seng Bank's exit still carries symbolic significance. As of January 8 close, Hang Seng Bank rose 0.07% to HK$153.900 per share, while HSBC Holdings fell 2.28% to HK$124.300 per share.

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