HSBC will merge Hang Seng Bank’s asset management unit into its own fund business, two sources with direct knowledge of the matter reported on Monday, October 26, 2026. The move follows the London-based bank’s $13.6 billion transaction to take the Hong Kong lender private earlier this year. According to the sources, HSBC Asset Management will absorb Hang Seng Investment Management.
In October 2025, HSBC launched a bid to take Hang Seng private as the Hong Kong lender dealt with increasing bad loans linked to property markets in Hong Kong and mainland China. Before the buyout, HSBC held a 63% stake in the bank. The transaction was finalized in January 2026. While HSBC previously pledged to maintain the two banks as independent brands, this merger would represent the first business-line integration.
Under the reported plan, HSBC Asset Management, which oversees approximately $876 billion in assets, will incorporate Hang Seng Investment Management’s $50 billion in assets. Hang Seng Bank currently manages the Tracker Fund, which is the largest exchange-traded fund in Hong Kong and a component of the city’s Mandatory Provident Fund pension program. HSBC and Hang Seng did not immediately respond to requests for comment on Monday, and the sources requested anonymity as the plans are not yet public.
This move follows HSBC’s recent appointment of cross-bank leaders to handle shared corporate functions. What happens next depends on the official announcement of the plan. While the two sources identified the plan on October 26, 2026, the specific effective date for the merger of the two asset management units has not yet been reported.