Shares in Hong Kong’s last independent banks leapt sharply on a wave of take-over speculation after Wing Hang became the second in a month to say it had attracted bid interest.
The four independent banks have relatively large pools of deposits and act as a gateway either into China for international bidders or out of China for mainland financial companies looking for access to foreign markets or foreign funds.
Bank of East Asia, the largest of the independents with a market capitalisation of HK$76.8bn ($9.9bn), and Dah Sing both issued statements to the stock exchange on Tuesday to say they had no explanation for the sudden leap in their stock prices. Chong Hing, the smallest independent, is already in play after it was approached in August by Yuexiu Group, the investment arm of the southern Chinese city of Guangzhou, and other potential bidders.