HSBC plans to merge Hang Seng Bank’s fund arm into its own asset management unit, two people familiar with the matter told Reuters.

Such a move would place the manager of Hong Kong’s largest ETF inside HSBC Asset Management.

Under the plan, HSBC Asset Management would take in Hang Seng Investment Management.

HSBC’s unit manages about US$876 billion in assets, compared with US$50 billion at the Hang Seng unit.

Neither source was named because the plan has not been made public.

HSBC did not comment on the reported merger. In an emailed statement, it said it wants its fund business to have the size and talent to compete in Hong Kong.

The bank added that it is “focused on collaboration across our teams to unlock future growth”.

It also said Hang Seng will keep its own banking licence. Hang Seng did not respond to a request for comment.

In October 2025, HSBC offered US$13.6 billion to take Hang Seng private.

At the time, the lender faced a rise in bad loans tied to property in Hong Kong and mainland China.

Before the deal closed in January, HSBC held a 63% stake in Hang Seng. Earlier, the group had pledged to keep the two banks as separate brands.

Most of HSBC’s profit comes from Asia. It has named leaders to run several functions that both banks share.

Run by Hang Seng Investment, the Tracker Fund of Hong Kong follows the Hang Seng Index.

This fund is a major product in Hong Kong’s Mandatory Provident Fund pension scheme.

Featured image: Edited by Fintech News Hong Kong, based on image by Hang Seng Bank via its website.