HSBC plans to merge the asset-management arm of Hang Seng Bank with its own fund business, according to sources close to the transaction. The proposal follows the bank’s decision to take the Hong Kong lender private in a deal valued at $13.6 billion.
Under the arrangement, HSBC Asset Management will absorb Hang Seng Investment Management. The former oversees roughly $876 billion in investment assets, while the latter currently manages about $50 billion.
A spokesperson for HSBC said in a statement, “We are committed to serving Hong Kong with two iconic brands, HSBC and Hang Seng, combining our global reach and local depth.” The same spokesperson added that the bank will keep Hang Seng Bank as a separately licensed entity, preserving its distinct brand identity and allowing it to continue operating under its own banking licence.
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The bank did not address whether the two asset management businesses would be merged. HSBC said it is “focused on collaboration across our teams to unlock future growth.” It also said Hang Seng Bank would remain separately licensed. The planned combination would be the first integration of a business line since HSBC launched its take-private offer for Hang Seng in October 2025, when it held a 63% stake in the lender. Hang Seng had reported rising bad loans related to its exposure to Hong Kong and mainland Chinese property markets.
In a separate development, the bank intends to reduce staff numbers in its UK wealth-management division as part of an AI programme. Roughly half of senior leadership roles and specialised positions could be eliminated. The programme is linked to a target of £100 billion ($132 billion) in managed assets by 2030. HSBC had more than £62 billion in managed assets at the end of last year.