This year was already a fertile one for dealmakers in Hong Kong leading into Thursday. Then came HSBC Holdings with its proposed US$14 billion buyout of Hang Seng Bank to really put a rocket under things.
HSBC’s offer — buy the 37% of Hang Seng Bank it doesn’t own already — pushes this year’s potential volume of deals such as mergers and acquisitions involving companies in Hong Kong to US$74 billion, a roughly 40% jump from the same period a year ago, data compiled by Bloomberg show.
Meanwhile, the city’s Hang Seng Index has soared 31%, well on course for its best annual performance since 2017, which it finished with a 36% gain.
The equity-market rally has lifted investors’ spirits, said Mayooran Elalingam, Deutsche Bank’s head of investment banking coverage and advisory in Asia Pacific. “Dialogue with clients about dealmaking is positive, which is quite encouraging for this fourth quarter and into next year,” he said.
HSBC’s bid for Hang Seng Bank, in addition to being a bet on the success of Hong Kong, marks a shift for a company that’s generally shied away from major deals in recent years and which has been cutting thousands of jobs.
Chief Executive Officer Georges Elhedery, who took over about a year ago, has remained bullish on Hong Kong’s position as a financial center. The reaction to the Hang Seng Bank offer was less so: HSBC’s shares slid 6% in Hong Kong on Thursday and 0.5% Friday.
Regardless, a multibillion dollar proposal adds to the buzz around dealmaking.
Others in the offing include a US$1.4 billion buyout of Kangji Medical Holdings by a consortium led by TPG and Qatar Investment Authority. CK Hutchison Holdings is pursuing a more than US$19 billion sale of its ports to a BlackRock-backed group, though the likelihood of that happening this year has faded.
Bankers have been particularly busy with equity capital markets transactions. Hong Kong’s first-time share sale proceeds have reached US$24 billion in 2025, heading for a four-year high, the data show. A big chunk of that comes from a growing cohort of mainland China-listed firms flocking to the Asian financial hub for fundraising, in many cases to support their overseas expansion.
See also: HSBC offers to privatise Hang Seng Bank via scheme of arrangement at HK$155 per share
“While M&A activity level in Hong Kong is not as high as ECM, we are a lot busier now than a year ago,” said Sulan Yang, deputy chief executive officer of CGS International Holdings, a subsidiary of China Galaxy Securities Co. “This trend will likely continue over the coming months, with many companies seeking to buy technology assets to boost innovation and growth.”
China Growth
China has also been on the boil this year, with the volume of deals climbing 42% from the same stretch in 2024 to US$333 billion.
Highlights include Bain Capital’s US$4 billion sale of its Chinese data centres, and JD.com offering to acquire Europe’s biggest retailer of consumer electronics, Ceconomy. Multinationals from Starbucks Corp and GE Healthcare Technologies to Häagen-Dazs owner General Mills are evaluating options for their businesses in China, including possible sales.
“Geopolitical factors and preliminary concerns around tariffs have been less impactful than first anticipated in China,” said Elalingam, who is based in Hong Kong. “Global investors are interested in China as valuations remain attractive compared with other parts of the world.”
