Hang Seng investment arm to merge with HSBC's asset business, sources say (updated)
UPDATE 2-Hang Seng investment arm to merge with HSBC's asset business, sources say Adds HSBC comment in paragraphs 4, 5
By Summer Zhen and Selena Li
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 in a $13.6 billion deal.
Under the planned deal, HSBC Asset Management, which manages investment assets of about $876 billion, will absorb Hang Seng Investment Management, which has $50 billion in assets, the two people said.
Both people declined to be named as the plan is not yet public.
HSBC in an email statement to Reuters said it aims to build its asset management business with the scale, talent, and ambition to compete in Hong Kong. It did not comment on any asset management merger.
The bank said it is "focused on collaboration across our teams to unlock future growth", adding it will maintain Hang Seng Bank as a separately licensed bank.
Hang Seng did not respond to Reuters' requests for comment.
If confirmed, the merger would mark the first business-line integration between the two banks, despite HSBC's earlier pledge to maintain two independent brands.
In October 2025, HSBC launched a take-private bid for Hang Seng, which faced an increase in bad loans due to its exposure to Hong Kong and mainland Chinese property markets. Previously, HSBC owned 63% of Hang Seng.
The deal was completed in January.
HSBC, which makes the bulk of its profits in Asia, has appointed cross-bank leaders to oversee several corporate functions that it has in common with Hang Seng.
Hang Seng runs the Tracker Fund 2800.HK, Hong Kong's largest exchange-traded fund that tracks the benchmark Hang Seng Index HSI., a prominent product in the city's Mandatory Provident Fund pension programme.
(Reporting by Summer Zhen and Selena Li; Editing by Joe Bavier, Thomas Derpinghaus and Barbara Lewis)
((Selena.Li@thomsonreuters.com; +852 39525868;))