Hang Seng investment arm to merge with HSBC's asset business, sources say
Hang Seng investment arm to merge with HSBC's asset business, sources say HONG KONG, Oct 26 (Reuters) - HSBC HSBA.L will merge Hang Seng Bank's asset management unit into its fund business, two people with direct knowledge of the matter said on Monday, after the London-based bank took the Hong Kong lender private last year in a $13.6 billion deal.
The planned deal will see HSBC Asset Management, which manages investment assets worth $876 billion, absorbing Hang Seng Investment Management, which has $50 billion worth of assets, the two people said.
Both the people declined to be named as the plan is not public yet. HSBC and Hang Seng did not immediately respond to Reuters requests for comment.
In October last year, HSBC launched a take-private bid for Hang Seng, which faced mounting bad loans due to heavy exposure to Hong Kong and mainland property. Previously, HSBC had owned 63% of Hang Seng.
The deal was completed in January.
(Reporting by Summer Zhen and Selena Li; Editing by Sumeet Chatterjee and Joe Bavier)
((Selena.Li@thomsonreuters.com; +852 39525868;))