LONDON—HSBC Holdings PLC, Europe’s largest bank, is counting on rising interest rates to help revive its share price after a sluggish decade—and to fend off an attack from its biggest shareholder.

The British bank has for years asked investors for patience as it retrenches from some major markets and sharpened its focus on Asia. That strategy has kept the bank’s finances steady—but it has also kept a lid on profits and depressed its stock. HSBC share price in Hong Kong remains roughly a third of its 2007 peak.