Explanations Regarding the Privatization of Hang Seng Bank and Anti-Scam Reminders
Release Date: 2025-10-10
There has been much recent market discussion about the privatization of Hang Seng Bank. To clarify misunderstandings and prevent fraud, this institution has compiled public information and industry analysis from a professional perspective to provide a clear explanation.
I. Analysis of Key Issues
1. How will physical share certificates be handled?
The share registrar will follow established procedures to mail offer cheques or arrange automatic transfers to registered holders of physical share certificates. Do not trust any third party claiming to "handle the procedures" on your behalf, as such requests are suspicious.
2. What happens if I hold Hang Seng shares?
If the privatization proposal is approved by shareholders, shareholders will receive HK$155 in cash per share (plus the third interim dividend). This price represents the highest level since 2019. The specific dividend amount was announced today (October 10, 2025).
3. Does this mean HSBC is withdrawing investment from Hong Kong?
HSBC's privatization of Hang Seng for approximately HK$106.1 billion in cash is a strategic investment. The announcement clearly states intentions to increase investment in talent and technology (including artificial intelligence), reflecting its long-term commitment to the Hong Kong market, not a withdrawal.
4. Will financial transparency decrease?
Although delisting means Hang Seng will no longer need to disclose results separately to the HKEx, as a subsidiary of the HSBC Group, its financial data will be consolidated into HSBC's listed company reports. Furthermore, all licensed banks are required to publish annual reports according to Hong Kong Monetary Authority (HKMA) regulations, which the public can access anytime on the HKMA website.
5. Will Hang Seng's market position decline?
After privatization, Hang Seng becomes a wholly-owned subsidiary of HSBC, which will help streamline the corporate structure and accelerate technology upgrades and resource integration. This move aims to strengthen the synergistic effects between the two brands, not weaken its market role.
II. Key Anti-Scam Reminders
Fraud groups may recently use the "privatization" topic to carry out crimes. Please note the following:
III. Response Measures
Hong Kong Securities & Futures Professionals Association
I. Analysis of Key Issues
1. How will physical share certificates be handled?
The share registrar will follow established procedures to mail offer cheques or arrange automatic transfers to registered holders of physical share certificates. Do not trust any third party claiming to "handle the procedures" on your behalf, as such requests are suspicious.
2. What happens if I hold Hang Seng shares?
If the privatization proposal is approved by shareholders, shareholders will receive HK$155 in cash per share (plus the third interim dividend). This price represents the highest level since 2019. The specific dividend amount was announced today (October 10, 2025).
3. Does this mean HSBC is withdrawing investment from Hong Kong?
HSBC's privatization of Hang Seng for approximately HK$106.1 billion in cash is a strategic investment. The announcement clearly states intentions to increase investment in talent and technology (including artificial intelligence), reflecting its long-term commitment to the Hong Kong market, not a withdrawal.
4. Will financial transparency decrease?
Although delisting means Hang Seng will no longer need to disclose results separately to the HKEx, as a subsidiary of the HSBC Group, its financial data will be consolidated into HSBC's listed company reports. Furthermore, all licensed banks are required to publish annual reports according to Hong Kong Monetary Authority (HKMA) regulations, which the public can access anytime on the HKMA website.
5. Will Hang Seng's market position decline?
After privatization, Hang Seng becomes a wholly-owned subsidiary of HSBC, which will help streamline the corporate structure and accelerate technology upgrades and resource integration. This move aims to strengthen the synergistic effects between the two brands, not weaken its market role.
II. Key Anti-Scam Reminders
Fraud groups may recently use the "privatization" topic to carry out crimes. Please note the following:
- If you receive a cal from someone claiming to be a bank employee asking you to transfer deposits or provide personal information, hang up immediately and proactively contact the bank through official channels (such as the bank's official website or the customer service number on the back of your card) to verify.
- Do not cick on links in calls or text messages, scan QR codes, or install remote control software.
- Banks wil never ask customers to transfer money or withdraw deposits due to reasons like "privatization" or "delisting."
- Any request for onine banking login details, One-Time Passwords (OTPs), card numbers, or verification codes is a scam.
- It is recommended to set transfer imits and enable two-factor authentication for elderly family members, while also teaching them to recognize common scams (e.g., impersonating banks, law enforcement, or relatives/friends requesting loans).
III. Response Measures
- Keep records of suspicious cals, text messages, and transactions (including screenshots, recordings, and caller numbers) for reporting and verification purposes.
- If a suspicious transaction has aready occurred, immediately call the bank's official hotline or visit a branch in person to report the loss and freeze the account.
- Seek hep through the following channels:
・ Hong Kong Police Anti-Deception Coordination Centre Hotline: 18222 (Dial 999 for emergencies)
・ Report suspicious situations to the relevant financial institution, the HKMA, or the Securities and Futures Commission (SFC).
- Pease rely on official announcements from Hang Seng Bank and HSBC as the authoritative source. Do not readily believe or forward unverified market rumors.
Hong Kong Securities & Futures Professionals Association