HSBC HOLDINGS Suggests Privatizing HANG SENG BANK at $155 per Share; Vote Scheduled for January 8
Privatization Proposal: HSBC Holdings and Hang Seng Bank announced the dispatch of a Scheme Document for the proposed privatization of Hang Seng Bank by HSBC Asia Pacific, with meetings scheduled for January 8, 2026.
Scheme Consideration Details: The proposed Scheme Consideration is HK$155 per share, reflecting a premium of approximately 33.1% over the average closing price of HK$116.49 for the last 30 trading days prior to October 8, 2025.
Approval and Timeline: The proposal requires approval from Hang Seng Bank shareholders and the Hong Kong High Court, with an expected effective date of January 26, 2026, and withdrawal of Hang Seng Bank Shares from the stock exchange on January 27, 2026.
Market Activity: As of December 12, 2025, HSBC Holdings experienced short selling of $500.92 million, while Hang Seng Bank had short selling of $12.05 million, indicating varying market sentiments towards both banks.
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Market Performance: The HSI closed slightly up at 26,847, while the HSCEI and HSTECH saw minor declines, with total market turnover dropping to $285.433 billion.
Sector Struggles: Software and dotcom sectors faced significant losses, with major companies like TENCENT and MEITU experiencing declines of 3.96% and 11.4%, respectively.
Resource Stocks Rise: Gold and silver prices rebounded, with companies like CHINAGOLDINTL and ZHAOJIN MINING seeing gains, while coal stocks like YANKUANG ENERGY surged by over 10%.
Financial Sector Movements: HSBC and AIA saw slight increases, while HKEX experienced a minor decline; Chinese property developers generally performed well, with several stocks rising between 5% and 10%.

Market Performance: The HSI closed up 59 points (0.2%) at 26,834, while the HSCEI and HSTECH fell by 27 points (0.3%) and 59 points (1.1%) respectively, with a total market turnover of HKD335.152 billion.
Tech Sector Movements: Major tech stocks like TENCENT, BIDU-SW, and BABA-W experienced declines, with TENCENT dropping 2.9% and BIDU-SW falling 3.6%, while NTES-S saw a slight increase of 0.3%.
Commodity and Bank Stocks: Commodity prices rose, benefiting stocks like ZIJIN GOLD INTL, which surged 7.8%, and bank stocks also performed well, with HSBC HOLDINGS increasing by 3.1%.
Short Selling Trends: Significant short selling activity was noted across various sectors, with TENCENT and BIDU-SW having high short selling ratios of 10.084% and 36.085% respectively, indicating bearish sentiment among investors.

Market Performance: The HSI rose by 59 points (0.2%) to 26,834, while the HSTI and HSCEI fell by 59 points (1.1%) and 27 points (0.3%) respectively, with a total market turnover of $335.15 billion.
Active Heavyweights: Major stocks like Tencent, Meituan, and Alibaba saw declines, with Tencent closing down 2.9% at $581, while Ping An was the only heavyweight to gain, closing up 0.8% at $71.3.
Notable Movers: CSPC Pharma and New Oriental experienced significant gains, rising 8.1% and 6.4% respectively, while Kuaishou-W and Baidu-SW faced notable declines, down 4.6% and 3.6%.
High Performers: CIMC and Wanguo Gold GP were standout performers, with CIMC surging 15% and Wanguo Gold GP increasing by 13.6%, both hitting new highs.

Market Overview: The HSI rose by 54 points (0.2%) to 26,830, while the HSCEI fell by 19 points (0.2%) to 9,060, and the HSTECH dropped by 72 points (1.3%) to 5,453, with a total half-day turnover of $195.285 billion.
Tech Sector Performance: Major tech stocks like TENCENT and BIDU-SW saw significant declines of 4.1% and 3.8%, respectively, with TENCENT's turnover nearing $26 billion, while other tech companies also experienced losses.
Banking Sector Gains: Banks such as HSBC and BOC HONG KONG reported gains of 2.3% and 2.5%, respectively, contributing to a positive trend in the banking sector, alongside notable increases in Chinese insurers.
Commodity and Real Estate Stocks: Commodity prices rose, with companies like ZIJIN GOLD INTL and CMOC increasing by over 4%, while Hong Kong homebuilders also saw gains, with HENDERSON LAND and SHK PPT rising by 2.1% and 1.7%.

Market Opening Performance: The HSI opened 220 points higher at 26,995, with the HSCEI and HSTECH also showing gains of 0.6% and 0.7%, respectively.
Commodity and Mining Stocks: Mining stocks like CHINAGOLDINTL and ZIJIN MINING saw significant increases, with short selling ratios indicating active trading, while other commodities also trended upward.
Financial Sector Highlights: HSBC HOLDINGS rose 3% following positive forecasts from BNP Paribas, while AIA and HKEX experienced modest gains, reflecting a stable financial market.
Tech and Automotive Stocks: Mixed performance in tech stocks, with TENCENT declining slightly, while NTES-S and NEW ORIENTAL-S saw notable increases; automotive stocks like BYD and NIO faced declines amid high short selling ratios.

HSBC's Market Strategy: HSBC is focusing on expanding its market share in the Hong Kong IPO market after exiting certain operations in the UK, US, and Europe, which led to a loss of talent in its investment banking unit.
Restructuring Challenges: CEO Michael Roberts acknowledged the challenges of restructuring, including the departure of senior bankers to competitors, but views this as a necessary part of the process.
Future Plans: The bank has developed an aggressive plan to grow its equity capital markets division through increased recruitment, anticipating a continued trend of Chinese companies listing in Hong Kong.
Short Selling Data: As of the latest report, HSBC has experienced significant short selling activity, with a ratio of 9.099% and a total of $67.85 million in short sales.





