Hong kong: Hang Seng Bank's stock surged over 25% Thursday after parent HSBC announced its plan to privatize the bank, valuing it at more than 290 billion Hong Kong dollars ($37.2 billion).

According to Anadolu Agency, the largest lender in Europe, HSBC, has requested that the board of Hang Seng Bank provide a plan for privatization to shareholders through a scheme of arrangement in accordance with the Companies Ordinance of Hong Kong.

HSBC CEO Georges Elhedery stated, 'Our offer is an exciting opportunity to grow both Hang Seng and HSBC.' He emphasized that the bank will preserve Hang Seng's brand, heritage, and customer proposition while investing to unlock new strengths in products, services, and technology.

The transaction, he noted, demonstrates HSBC's belief in Hong Kong's position as a major global financial hub and as a "super-connector" between global markets and mainland China. The offer allows for modifications to reflect dividends declared after the announcement date, with the exception of Hang Seng's third interim dividend for 2025.

HSBC further stated that expanding in Hong Kong is one of its strategic goals and that it is "best positioned" to do so by bolstering the banking footprint of Hang Seng Bank and HSBC Asia Pacific in Hong Kong.