HSBC Rises in Hong Kong Ahead of Hang Seng Delisting and Profit-Target Hints

Hong Kong, 27 January 2026, 15:50 HKT — Regular session

Shares of HSBC Holdings Plc surged in Hong Kong on Tuesday, following confirmation that its court-sanctioned plan to take Hang Seng Bank private has been completed. The unit’s listing is set to be withdrawn at 4 p.m. local time, signalling a major strategic move for the banking group in Asia. HSBC’s Hong Kong shares climbed HK$3.70, or approximately 2.8%, to close at HK$134.70. In other markets, the stock rose $1.15 to $85.09 in New York and traded at 1,242.2 pence in London.

The move underscores HSBC’s prominent role in Hong Kong’s financial markets, where it serves as a bellwether for the broader banking sector. Investors are increasingly focused on upcoming earnings reports to gauge whether major banks can sustain profitability amid a backdrop of potential rate cuts and heightened competition for loans.

A Reuters report on Monday suggested that HSBC may raise its return on tangible equity (ROTE) guidance—currently pegged at “mid-teens or better”—when it announces annual results on 25 February. Similarly, NatWest and Barclays are expected to lift their targets, with analysts projecting potential increases of up to 200 basis points (two percentage points). Peter Rothwell, head of banking at KPMG UK, highlighted the sector’s “earnings resilience” amid persistently high interest rates and tighter operational costs, while Shore Capital’s Gary Greenwood noted that government expectations for faster loan-book growth could exert downward pressure on lending rates.

In support of corporate expansion, HSBC and four other leading British banks have collectively pledged £11 billion ($15 billion) in loans to help companies grow internationally. UK Export Finance will back up to 80% of qualifying loans. Business and Trade Minister Peter Kyle emphasised that export growth relies on firms having the “means, motive, and opportunity” to enter new markets.

Investors are also awaiting the U.S. Federal Reserve’s policy statement on 28 January, with Chair Jerome Powell set to hold a press conference immediately afterward. The trajectory of interest rates remains pivotal for bank shares, as it directly affects lending margins and overall profitability.

HSBC’s Hang Seng takeover, executed through a scheme of arrangement that buys out minority shareholders for cash, signals a focused commitment to its Asia strategy. Payments are scheduled for early February, completing the final step in the privatisation process.

Key Market Data – HSBC Holdings Plc (27 Jan 2026)

With Hang Seng Bank’s delisting, the upcoming Fed announcement, and HSBC’s annual results all imminent, the next few weeks promise to be pivotal for investors tracking banking-sector momentum.