Core Viewpoint - Citigroup's report indicates that HSBC Holdings announced plans to acquire a 37% minority stake in Hang Seng Bank at a price reflecting a 30% premium and a price-to-book ratio of 1.8 times [1] Group 1: Acquisition Details - The acquisition is expected to impact HSBC's capital by 125 basis points, with the funding coming from a suspension of stock buybacks for three quarters [1] - The acquisition premium is considered substantial, especially as Hang Seng Bank's stock price has risen by 24% over the past 12 months [1] Group 2: Strategic Implications - The move reflects the new management's strategic priorities under CEO Noel Quinn, focusing on restructuring HSBC according to a new business framework [1] - The strategy emphasizes a focus on Hong Kong and the UK, as well as Corporate and Investment Banking (CIB) and Individual Wealth Management (IWPB) [1] - The management is also advancing a cost-cutting plan and strategic asset disposals, which are progressing steadily [1]

Core Viewpoint - UBS reports that HSBC intends to acquire the remaining 36.5% stake in Hang Seng Bank at HKD 155 per share, which represents a significant 30% premium over Hang Seng's last closing price, implying a price-to-book ratio of 1.8 times for the fiscal year 2025 [1] Group 1: Acquisition Details - The acquisition proposal will not affect Hang Seng Bank's status as an independent licensed bank but will enhance coordination between HSBC and Hang Seng, leading to mid-term revenue and cost synergies [1] - UBS has assigned a "Sell" rating to Hang Seng Bank with a target price of HKD 102 [1] - Following the announcement, Hang Seng's stock price surged by 26% on October 9, indicating potential upside if the transaction proceeds smoothly [1] Group 2: Expected Outcomes - UBS anticipates that the potential revenue and cost synergies will positively impact HSBC in the mid-term, improving Hang Seng's efficiency and competitive positioning [1] - The privatization proposal is expected to be completed in the first half of 2026, pending approval from at least 75% of minority shareholders [1] - According to the Hong Kong Stock Exchange, there are no other significant shareholders besides HSBC, and the minority shareholding appears to be highly dispersed, primarily held by passive funds [1] Group 3: Regulatory Considerations - There has been no discussion regarding the regulatory stance on the privatization transaction, but UBS believes HSBC has sufficient reasons to expect no significant regulatory obstacles [1]

瑞银指出，正如分析师电话会议所强调，潜在的收入及成本协同效应，预计将在中期对汇丰产生正面影 响;相信此举将提升恒生的效率及竞争定位，同时提升汇丰对高回报的香港本地市场和快速增长的国际 财富管理业务中的份额。 瑞银表示，私有化提案料于2026年上半年完成，须获少数股东至少75%投票权批准。根据港交所(00388) 股权披露，除汇丰外无其他重大股东。少数股权似乎高度分散，主要由被动型基金组成。除少数股东投 票外，尚未讨论监管机构对私有化交易的立场。瑞银认为，汇丰银行有充分理由相信不会有任何重大监 管障碍。 智通财经APP获悉，瑞银发布研报称，汇丰银行(00005)宣布有意以每股155港元，连同第三期中期股息 收购恒生银行(00011)剩余36.5%股权。此要约较恒生银行最后收市价提供显著30%溢价，并隐含2025财 年1.8倍市账率。根据公司表示，私有化不会影响恒生银行作为独立授权持牌银行的地位，但将加强汇 丰与恒生银行之间的协调，从而带来中期收入及成本协同效应。瑞银予恒生银行评级"沽售"，目标价 102港元。消息公布后，恒生昨日(10月9日)股价急升26%，瑞银相信若交易顺利进行，股价存在上行空 间。 ...

Core Viewpoint - UBS reports that HSBC Holdings (00005) has proposed to privatize Hang Seng Bank (00011) at HKD 155 per share, with HSBC believing there will be no significant regulatory obstacles to the acquisition [1] Group 1: Financial Impact - If the acquisition is successful, HSBC's Common Equity Tier 1 (CET1) capital ratio is expected to decrease by 125 basis points [1] - HSBC anticipates restoring the CET1 ratio to a target range of 14%-14.5% through organic growth, and plans to suspend share buybacks for the next three quarters while maintaining a 50% payout ratio based on underlying earnings for 2025 [1] - The CET1 ratio for HSBC was 14.6% in Q2 of this year, and the bank expects the transaction to enhance earnings per share, although no additional financial data regarding the transaction has been provided [1] Group 2: Operational Perspective - From a customer standpoint, Hang Seng Bank will continue to operate under its existing model [1] - UBS previously expressed concerns regarding provisions for commercial real estate loans at Hang Seng Bank, but now believes that increasing exposure to this high Return on Tangible Equity (ROTE) market while reducing internal operational complexity is a correct strategy [1]

公告显示，恒生银行植根香港近百年，有着深厚的传统。汇丰十分尊重恒生银行的独特地位，计划继续 透过汇丰及恒生银行两大品牌，服务香港市场。因此，恒生银行将保留其根据香港银行业条例所独立获 授的持牌银行认可，并维持独立的企业管治、品牌形象、独特的市场定位，以及分行网络。此外，汇丰 深知恒生银行在本地社区所担当的重要角色，并将继续支持恒生银行长期参与的社区项目。 10月9日，汇丰控股发布公告称，汇丰亚太作为要约人，已要求恒生银行董事会向计划股东提呈建议， 根据公司条例第673条以协议安排方式将恒生银行私有化。倘若计划生效，计划股份将予以注销，以换 取计划对价，即持有每股计划股份可获现金港币155.00元（扣除股息调整金额，如有）。 截至本公告刊发之时，恒生银行已发行股份共计18.76亿股，其中6.85亿股将构成计划股份。根据每股计 划股份港币155.00元的计划对价，并假设根据恒生银行股份回购计划回购且截至本公告刊发之时仍待注 销的280万股恒生银行股份将于计划文件发布时或之前注销；及假设自本公告刊发之时起至计划记录日 期（包括当日）恒生银行股份数量不再发生变动且并无任何股息调整金额：建议对恒生银行的全部已发 行股本 ...

Core Viewpoint - UBS reports that HSBC Holdings (00005) has proposed to privatize Hang Seng Bank (00011) at HKD 155 per share, with HSBC confident that there will be no significant regulatory obstacles [1] Group 1: Financial Implications - If the acquisition is successful, HSBC's Common Equity Tier 1 (CET1) capital ratio is expected to decrease by 125 basis points [1] - HSBC anticipates restoring the CET1 ratio to a target range of 14%-14.5% through organic growth, and plans to suspend share buybacks for the next three quarters while maintaining a 50% payout ratio based on underlying earnings for 2025 [1] - HSBC's CET1 ratio was 14.6% in Q2 of this year, and the bank expects this transaction to enhance earnings per share, although no additional financial data regarding the transaction has been provided [1] Group 2: Customer Perspective - From a customer standpoint, Hang Seng Bank will continue to operate under its existing model [1] - UBS previously expressed concerns regarding provisions for commercial real estate loans at Hang Seng Bank, but believes that increasing exposure to this high Return on Tangible Equity (ROTE) market while reducing operational complexity within the group is a correct move [1]

Group 1 - The Federal Reserve's September meeting minutes indicate that most officials believe further rate cuts are appropriate for the remainder of the year, while also emphasizing that inflation risks remain tilted to the upside, reflecting a cautious stance on monetary policy [2] - The latest forecasts show that, on a median basis, Fed officials expect two more 25 basis point rate cuts this year, but there are significant divisions within the committee, with 6 out of 19 participants expecting only one rate cut or no cuts at all in 2025 [2] - Despite rising risks in the labor market, most officials do not anticipate a sharp decline in employment, noting that recent indicators have not shown significant deterioration in labor market conditions [2] Group 2 - Market expectations reflected in federal funds futures suggest that investors widely anticipate rate cuts from the Fed in October and December [2] - The meeting occurred two weeks before a potential government shutdown, which has led to the suspension of key economic data releases [2] Group 3 - As of October 9, the yield on China's two-year government bonds is 1.49%, while the ten-year yield is 1.85%. In the U.S., the two-year yield rose by 1 basis point to 3.58%, and the ten-year yield fell by 1 basis point to 4.13% [6] - HSBC and Hang Seng Bank announced a proposal to privatize Hang Seng Bank through an arrangement under company law [6] - Fantasia Holdings reported that 84.54% of its existing notes and 77.33% of its total outstanding debt have been signed or effectively joined the restructuring support agreement, marking a significant milestone in its restructuring process [6]

Core Viewpoint - S&P Global Ratings anticipates that HSBC's acquisition of Hang Seng Bank at a 30.3% premium will strengthen the ties between the two banks, enhance governance consistency, and promote closer operational collaboration [1] Group 1: HSBC and Hang Seng Bank Relationship - The privatization is expected to reinforce the relationship between HSBC and Hang Seng Bank, facilitating tighter cooperation in business and operations [1] - S&P believes that Hang Seng Bank will continue to operate under its independent brand post-privatization, reflecting HSBC's long-term commitment to the Hong Kong market [1] Group 2: Financial Implications - S&P estimates that the capital pressure faced by HSBC due to the buyback of all outstanding shares of Hang Seng Bank will remain manageable [1] - The transaction is projected to be completed in the first half of 2026, which will lead to a decrease in HSBC's risk-adjusted capital (RAC) ratio by approximately 2%, bringing it to around 11% to 12% by the end of 2026, still above S&P's strong capital threshold of 10% [1]

瑞银指出，正如分析师电话会议所强调，潜在的收入及成本协同效应，预计将在中期对汇丰产生正面影 响；相信此举将提升恒生的效率及竞争定位，同时提升汇丰对高回报的香港本地市场和快速成长的国际 财富管理业务中的份额。瑞银予恒生银行"沽售"评级，目标价102港元，相信若交易顺利进行，股价存 在上行空间。 瑞银发表研究报告指，汇丰宣布有意以每股155港元，连同第三期中期股息收购恒生银行剩余36.5%股 权。此要约较恒生银行最后收市价提供显著30%溢价，并隐含2025财年1.8倍市账率。根据公司表示， 私有化不会影响恒生银行作为独立授权持牌银行的地位，但将加强汇丰与恒生银行之间的协调，从而带 来中期收入及成本协同效应。 ...

Core Viewpoint - HSBC Holdings plans to acquire 680 million shares of Hang Seng Bank at HKD 155 per share, totaling HKD 106 billion (approximately USD 13.6 billion), increasing its stake from 63% to 100% [1] Group 1: Acquisition Purpose - The acquisition aims to enhance synergy, simplify operations, and capture growth opportunities while maintaining Hang Seng Bank's brand and independent status [2] - HSBC's CEO expressed confidence in the Hong Kong market and Hang Seng's operational capabilities, indicating that the acquisition will lead to cost savings and improved product offerings for customers [2] Group 2: Financial and Regulatory Impact - The acquisition is expected to reduce HSBC's core Tier 1 capital ratio by approximately 165 basis points, but the removal of minority interest deductions will increase it by about 40 basis points, resulting in a net impact of 125 basis points [4] - HSBC's ordinary share EPS is projected to increase post-acquisition, leading to a rise in dividend per share (DPS) and an increase in dividend yield from 5.3% to 5.4% [3] Group 3: Investment Recommendations - Short-term impacts include a decline in share price due to reduced dividend and buyback returns, with a noted 6% drop following the announcement [5] - The acquisition is expected to decrease net assets by approximately 4%, affecting the company's valuation, which is already reflected in the recent share price drop [6] - The projected return from dividends and buybacks for 2026 is expected to decrease to 7.5%, compared to Standard Chartered's 8.8%, indicating a potential decline in attractiveness [6]