HSBC Shares Edge Higher as Hang Seng Privatisation Enters Voting Phase
HSBC Holdings plc shares gained modestly on December 16, 2025, as the bank advanced its proposed privatisation of Hang Seng Bank. The Scheme Document has been dispatched, setting the stage for a shareholder vote on January 8, 2026. HSBC's offer of HK$155 per Hang Seng share represents a 33.1% premium over the 30-day average prior to October's announcement.
Capital allocation shifts are now in focus. With share buybacks paused for the next three quarters, dividends emerge as the primary near-term return mechanism. The third interim dividend, ex-date November 6, will be paid on December 18.
Legal risks linger. A French tax probe settlement remains unresolved, creating potential market overhang. Yet strategic clarity around the Hang Seng deal and governance adjustments bolster medium-term confidence.
