HSBC Takes 1.4B in Loans from Hang Seng
HSBC acquired 1.4 billion dollars in loans from its subsidiary Hang Seng Bank to strengthen its balance sheet amid a property sector downturn. The transaction helped reduce Hang Seng's impaired loan ratio from previous highs.
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HSBC HOLDINGS PLC-SPONS ADR acquired HK$11 billion ($1.4 billion) in loans from subsidiary Hang Seng Bank during the first half of the year. The transaction shores up the unit's balance sheet following a prolonged property market slump. The deal follows HSBC taking Hang Seng private in a $13.6 billion transaction earlier this year. Hang Seng faced mounting bad loans due to heavy exposure to commercial real estate in China and Hong Kong.
