HSBC reportedly plans to combine Hang Seng’s investment arm with its fund business

HSBC ($HSBA) plans to absorb Hang Seng Investment Management into its asset-management business, Reuters reported, citing two people familiar with the proposal. The units oversee roughly $50 billion and $876 billion respectively. HSBC declined to confirm a merger, while saying it wanted greater scale in asset management and would retain Hang Seng as a separately licensed bank.

Hang Seng already became wholly owned by HSBC Asia Pacific following its earlier privatisation and removal from the Hong Kong exchange. HSBC’s official description preserves Hang Seng’s own governance, branding, branch network and customer offering. The reported investment-business consolidation would be a further integration step within the group; it remains unconfirmed, with no completed merger or financial savings announced.

Sources:

• Reuters
• hsbc.com