Hang Seng Bank Ltd.’s shares rose to the highest since 2008 on speculation that the Hong Kong lender will issue a special dividend once it sells a second stake in China’s Industrial Bank Co. for as much as $2.7 billion.
Shares of the bank, controlled by HSBC Holdings Plc, climbed 2.8 percent as of 9:58 a.m. local time, outpacing a 0.2 percent gain in the benchmark Hang Seng Index.
Hang Seng Bank could pay a special dividend of HK$10 per share after the stake sale that was announced yesterday, Barclays Plc analysts Sharnie Wong and Evian Wong wrote in a note. The company is offering almost 5 percent of Industrial Bank to money managers, cutting its holding to less than 0.9 percent.
Hang Seng Bank joins global banks including Bank of America Corp. and Goldman Sachs Group Inc., which have raised at least $14 billion divesting shares in Chinese financial institutions since the start of 2012. The lender sold a 5 percent stake in Industrial Bank in February for about $2 billion as regulators made it more expensive for banks to hold minority investments.