HSBC's (0005) HK$106.1 billion offer to take Hang Seng Bank (0011) private has sparked frustration among some minority shareholders, who criticized the deal's premium valuation amid rising bad loans at the Hong Kong lender.
The offer of HK$155 per share, representing a 30 percent premium to Hang Seng's last closing price, prompted immediate backlash from retail investors.
One HSBC shareholder complained online about suffering a HK$40,000 paper loss in a single day, asking why HSBC shareholders were "suffering while Hang Seng shareholders are having a party."
The shareholder attributed the privatization plan to Hang Seng's bad debt problems, stating "the whole thing is clearly because Hang Seng lent money recklessly."
Similar sentiments flooded online forums, with one investor questioning: "Why such a high premium? Wouldn't HK$125 or HK$130 work?"
According to Hang Seng Bank's interim results released in late July, its non-performing loan ratio had climbed to 6.69 percent as of June 30, 2025, up from 6.12 percent at the end of the previous year.
Total impaired loans reached HK$55 billion, including HK$25.01 billion in impaired Hong Kong commercial real estate loans that had undergone credit impairment charges.
