The industry is mulling options for handling live positions linked to the Hong Kong bank’s stock, including replacement of the underlying and early termination.
The privatisation of Hang Seng Bank proposed by HSBC, its largest shareholder, in a HK$106.1 billion (US$13.6 billion) buyout offer earlier this month, shook the market. The delisting of Hang Seng Bank stock would be one of the corporate actions, if the deal went through, prompting banking issuers to mull options for what to do with the underlying exposure to structured products, according to multiple senior sources. In the Hong Kong equity-linked investment market, there are 45 live public o