HSBC gains court sanction for Hang Seng Bank privatisation scheme

Capital reduction clears path for planned Hong Kong delisting

HSBC Holdings has secured court approval for a scheme of arrangement involving Hang Seng Bank, after the High Court sanctioned the proposal on 23 January 2026, according to a joint announcement with HSBC Asia Pacific.

The court sanction clears a key procedural step required to implement the scheme, which includes a capital reduction as part of the privatisation process. The scheme is expected to become effective on 26 January 2026, subject to the fulfilment of remaining conditions set out in the announcement.

Following the scheme becoming effective, the withdrawal of Hang Seng Bank shares from trading on the Hong Kong Stock Exchange is expected at 4:00 p.m. on 27 January 2026. The timetable remains conditional on the scheme taking effect as planned, the companies said.

The joint announcement stated that the capital reduction forms part of the privatisation mechanics. The companies added that the move is not expected to have any material effect on consolidated earnings per share or net tangible asset value per share for the financial year ending 31 December 2026.