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Morningstar: HSBC HOLDINGS' Premium Privatization of HANG SENG BANK May Bring Cost Synergies
HSBC HOLDINGS (00005.HK) announced that its subsidiary, HSBC Asia Pacific, plans to privatize HANG SENG BANK (00011.HK), and apply for the delisting of its shares, offering a premi...
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Morningstar: HSBC HOLDINGS' Premium Privatization of HANG SENG BANK May Bring Cost Synergies
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HSBC HOLDINGS (00005.HK)  -0.500 (-0.481%)    Short selling $710.08M; Ratio 19.082%   announced that its subsidiary, HSBC Asia Pacific, plans to privatize HANG SENG BANK (00011.HK)  +0.600 (+0.401%)    Short selling $161.78M; Ratio 6.705%   , and apply for the delisting of its shares, offering a premium of over 30% per share. The Company will continue to serve the Hong Kong market with its two major brands of HSBC and HANG SENG BANK.

Michael Makdad, Senior Equity Analyst at Morningstar, believed that parent-subsidiary double listings in Hong Kong are inherently problematic in terms of governance. Therefore, HSBC HOLDINGS' proposal to privatize HANG SENG BANK represents a positive and long-overdue move.

Related NewsUBS: HANG SENG BANK (00011.HK) Rated at Sell on Potential Upside if HSBC Privatization Proceeds
HSBC HOLDINGS will need to pay a premium for the privatization, which is not expected to have a positive impact on his fair value estimation, Makdad added. However, there should be some opportunities for cost synergies.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-10-10 16:25.)

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