"Wing Hang"

Hong Kong banks attract suitors

Wing Hang Bank is the second of four family controlled lenders to attract a takeover approach. M&A bankers and analysts calculate the likelihood of talk turning into deals.
Wing Hang said its controlling shareholders had been approached by independent third parties about selling their shares.
Wing Hang said its controlling shareholders had been approached by independent third parties about selling their shares.

Wing Hang Bank is the latest family owned lender in Hong Kong to say it has received a takeover approach, prompting talk of sector-wide consolidation.

The announcement follows news from Hong Kong’s smallest family-run lender Chong Hing Bank on August 7 that it too had attracted a suitor.

Part of the attraction, say MA bankers, is the potential to use the small Hong Kong banks as a launch pad for cross-border renminbi-denominated business.

Bankers say that Hong Kong’s small banks are ripe for consolidation given the manifold pressures on their profits such as low interest rates and competition.

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