A finance sector lawmaker on Thursday said HSBC's proposal to privatise Hang Seng Bank would not affect the city's status as an international financial centre, and the legacy of the bank would continue despite the announcement.

Ronick Chan noted that under the announcement Hang Seng's brand, which has been operating for more than 90 years, would be retained.

"HSBC will still [retain] Hang Seng's brand name to operate here in Hong Kong, meaning [the] number of banks in Hong Kong remains unchanged. The only impact will be there will be one listed company less because Hang Seng will be delisted, and there will be one listed company being eliminated,"

"So that it won't, I think, create any negative impact on Hong Kong's status as an international financial centre. I think the legacy of Hang Seng will continue as its present situation."

He went on to say that it was a good move for HSBC to retain Hang Seng's brand name, given the bank has a strong presence on the mainland.

Chan told customers not to worry about the privatisation.

"Hang Seng is a bank that serves our local SMEs and local Hong Kong people in terms of their financing needs and also investment portfolio."

"I think that role will continue based on the current understanding from HSBC's announcement that I think the customers of Hang Seng will not be affected as a result of this privatisation exercise."

HSBC are offering to cancel Hang Seng shares for a cash payment of HK$155 per share – a premium of 30 percent over the closing price on Wednesday.

Shares of Hang Seng surged by more than 30 percent on Thursday morning after the proposal was unveiled, while those of HSBC fell by about seven percent.

Alex Wong, director of Alex KY Wong Management Company, who runs a fund that owns shares of HSBC, believes the deal would be attractive to Hang Seng shareholders.

"Because it is not cheap, and also Hang Seng actually has been a weak stock in the past year because of the concern on the exposure of property," he said.

"So the deal actually is good for Hang Seng, but people think HSBC may be a little bit risky to overpay the shareholders for Hang Seng."