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<Research>CICC: Decline in Div./ Buyback Yield Caused by HANG SENG BANK Privatization May Drag HSBC HOLDINGS Temporarily
HSBC HOLDINGS (00005.HK) announced last Thursday (9th) its plan to acquire 680 million shares of HANG SENG BANK (00011.HK) at HKD155 per share in cash, with a total acquisition pri...
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<Research>CICC: Decline in Div./ Buyback Yield Caused by HANG SENG BANK Privatization May Drag HSBC HOLDINGS Temporarily
Recommend
12
Positive
22
Negative
19
 
 

HSBC HOLDINGS (00005.HK)  -0.900 (-0.870%)    Short selling $650.30M; Ratio 18.183%   announced last Thursday (9th) its plan to acquire 680 million shares of HANG SENG BANK (00011.HK)  +0.600 (+0.399%)    Short selling $93.52M; Ratio 8.067%   at HKD155 per share in cash, with a total acquisition price of HKD106 billion (around USD 13.6 billion), according to a report from CICC.

The acquisition will bring HSBC HOLDINGS' stake in HANG SENG BANK from 63% to 100%. If progress is smooth, the company expects to gradually complete the privatization by mid-2026. CICC gave HSBC HOLDINGS an Outperform rating and a target price of HKD111.9.

Related NewsBrokers' Latest Opinions on HSBC HOLDINGS' Privatization of HANG SENG BANK
In the short term, the decline in the dividend + buyback yield may drag HSBC HOLDINGS' stock performance. In the medium to long term, attention should be paid to whether the synergies brought by the acquisition can sustainably boost per-share equity and the situation of buyback recovery after three quarters.

From the perspective of the dividend + buyback yield, the acquisition will sink HSBC HOLDINGS' dividend + buyback yield for FY26 to 7.5% (return rate from 4Q25 to 3QFY26 down to 6.2%). The cost-effectiveness may drop when compared to STANCHART's (02888.HK)  +0.100 (+0.066%)    Short selling $772.93K; Ratio 0.598%   8.8%.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-10-13 16:25.)

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