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Bond Market News
HSBC to Buy Out Hang Seng Unit for $14bn
October 13, 2025
HSBC Holdings Plc proposed taking its HK subsidiary Hang Seng Bank Ltd private, last Thursday. The bank will spend about $14bn buying the shares it doesn’t already hold at a price of HK$155 ($19.9), which values the unit at $37bn. HSBC CEO Georges Elhedery said the purchase “delivers greater shareholder value than buybacks” and will allow Hang Seng to offer its customers a wider range of products and better access to HSBC’s international network. To keep its capital ratio within range, HSBC said it will refrain from buybacks for the next three quarters. Investors’ concern that HSBC may be overpaying sent its shares tumbling as much as 7% in early London trading last Thursday, the biggest intraday loss in six months, while Hang Seng Bank shares surged 26% to HK$149.40. The HKMA said in a statement that it has been in communication with HSBC and Hang Seng Bank regarding regulatory approvals, noting that HSBC plans to invest significantly in Hong Kong and that the two banks will continue to operate separately.
HSBC’s bonds traded stable for instance its 7.05% Perp were at 103.1 cents on the dollar, yielding 6.26%
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