(Bloomberg) -- Hang Seng Bank Ltd., the Hong Kong lender controlled by HSBC Holdings Plc, surged the most since February 2012 on speculation that it may sell a 10.9 percent stake in China’s Industrial Bank Co.
The shares jumped 4 percent to HK$141.80 as of 9:57 a.m. local time on Wednesday. Hang Seng is considering selling the stake, people familiar with the matter said. The lender said it was yet to make a decision. The stake was valued at about $4.8 billion on Tuesday, based on Industrial Bank’s share price.
The bank may first divest about half its holding, with the rest to be sold at a later date, a person familiar with the matter said Tuesday, asking not to be identified as the information is private.
Hang Seng would join global banks including Bank of
America Corp. and Goldman Sachs Group Inc., which have raised at least $14 billion divesting shares in Chinese financial institutions since the start of 2012. Hang Seng’s stake in Industrial Bank, based in Fuzhou city, may have become less appealing under regulatory requirements that lenders hold extra capital against minority investments.