Core Viewpoint - HSBC Holdings proposed to privatize Hang Seng Bank at HKD 155 per share, valuing the transaction at USD 13.7 billion, aligning with HSBC's strategy to deepen its business in Hong Kong and expected to generate long-term revenue and cost synergies [1] Group 1 - DBS believes the impact on earnings per share from this move will be minimal [1] - Stock buybacks are expected to be paused for the next three quarters [1] Group 2 - DBS reiterated a "Buy" rating for HSBC, raising the target price from HKD 98.7 to HKD 113.7 [1] - DBS forecasts HSBC's dividends per share for 2025 to 2027 to be HKD 5.31, HKD 5.56, and HKD 5.94, with dividend yields of 5.1%, 5.3%, and 5.7% respectively [1]

Core Insights - The Bank of England (BoE) is prioritizing tokenization in its digital finance strategy while limiting the use of stablecoins [1][7] - Governor Andrew Bailey has shifted his perspective on stablecoins, recognizing their potential but still advocating for tokenization as a superior innovation [5][7] Tokenization Strategy - The BoE is focusing on tokenized bank deposits rather than stablecoins, with major UK banks like HSBC, NatWest, Lloyds, and Barclays piloting tokenized deposits for various applications [7][8] - The central bank's approach aims to keep money within the regulated banking system, enhancing financial stability [5][7] Stablecoin Regulation - The BoE plans to impose limits on stablecoin holdings, allowing individuals to hold between £10,000 and £20,000 ($13,400–$26,800) and companies up to £10 million [2] - Exemptions for certain crypto firms, such as exchanges and custodians, are expected, indicating a more flexible regulatory stance [3] Digital Securities Sandbox - The BoE intends to modify its Digital Securities Sandbox to permit limited use of regulated stablecoins for settlement, allowing for real-world testing of these assets [3][4]

Core Viewpoint - HSBC announced a plan 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 ownership from 63% to 100% [1] Group 1: Acquisition Details - The acquisition price represents a 30% premium over the previous day's closing price of HKD 119, corresponding to a price-to-book (P/B) ratio of 1.8x [1] - The acquisition is subject to approval from 75% of Hang Seng's minority shareholders and less than 10% opposition [1] - HSBC aims to complete the privatization of Hang Seng by mid-2026 if the process goes smoothly [1] Group 2: Strategic Rationale - The purpose of the acquisition is to enhance synergy, simplify operations, and reduce costs, while maintaining Hang Seng's brand and independent legal status [1] - HSBC's CEO expressed confidence in the Hong Kong market and Hang Seng's operational capabilities, indicating that the acquisition will strengthen collaboration and capture growth opportunities [1] - Post-acquisition, Hang Seng's customers will have access to a broader range of HSBC products and services, enhancing competitiveness and digital service capabilities [1] Group 3: Financial Impact - The acquisition is expected to reduce HSBC's core Tier 1 capital ratio by approximately 165 basis points, but the removal of minority shareholder equity deductions will increase it by about 40 basis points, resulting in a net impact of 125 basis points [3] - HSBC's ordinary share EPS is projected to increase as the profits attributable to Hang Seng's minority shareholders will no longer be deducted, leading to an increase in dividend per share (DPS) and a slight rise in dividend yield [2][3] - The acquisition will lead to a decrease in cash and net assets by USD 13.6 billion, while ordinary shareholders' equity will increase by USD 7.3 billion [3] Group 4: Market Reaction and Valuation - Following the announcement, HSBC's stock price dropped by 6%, reflecting the market's concern over the short-term impact on dividends and buyback rates [4] - The acquisition is expected to lower the estimated return on equity (ROE) and buyback return rate, with the 2026 estimated return dropping from 9.4% to 7.5% [2][4] - The estimated buyback amount for 2026 is revised down from USD 10 billion to USD 5 billion, resulting in a decrease in buyback return rate from 4.1% to 2.0% [3][4]

（原标题：汇丰银行称越南将在未来十年受益于资本市场改革） 越通社10月8日报道，富时罗素宣布将越南股票市场升级为次级新兴市场，该升级将在2026年9月21 日正式生效。 汇丰银行专家评估，该升级将为越南未来十年吸引大量资本流入和提升其国际地位创造机会。尽管 此次升级附带一些条件，但对于距离发达市场仅两步之遥的越南来说意义重大。下一个目标是到 2030 年获得 MSCI新兴市场指数地位，预计将进一步带动资本流动。专家表示，此次评级上调不仅是一个象 征，还将影响分析师和媒体对市场的看法，以及全球投资者的资产配置决策。越南资本市场在质量和规 模上都取得了显著进步。过去10年，市值和交易账户数量增长了7倍。仅今年一年，越南指数就超过了 新冠疫情期间的峰值，表明市场对越南在全球供应链中的作用充满信心。 ...

Core Viewpoint - HSBC Holdings has announced the issuance of conditional awards to employees under the HSBC International Employee Share Purchase Plan, allowing the subscription of a total of 321,679.21759 shares of common stock at a par value of $0.5 per share [1] Summary by Category - **Employee Share Awards** - The company granted a total of 321,679.21759 shares to employees under the plan [1] - This includes 161,206.61948 shares listed on the London Stock Exchange and 160,472.59811 shares listed on the Hong Kong Stock Exchange [1]

Core Viewpoint - HSBC Holdings plans to privatize its approximately 63% stake in Hang Seng Bank at a cash price of HKD 155 per share, representing a 30% premium over the previous closing price, with a total transaction value of approximately HKD 166 billion [3]. Group 1: Transaction Details - The acquisition will lead to a short-term impact on HSBC's capital position, with the Common Equity Tier 1 (CET1) capital ratio expected to drop by about 125 basis points from 14.6% to approximately 13.4% [3]. - The proposed purchase price equates to a price-to-book (P/B) ratio of about 1.8 for Hang Seng Bank, compared to HSBC's own P/B ratio of approximately 1.42 [3]. Group 2: Strategic Implications - The significant premium indicates management's intention to integrate retail and wealth management businesses to enhance capital efficiency [3]. - There is a risk that HSBC may be overestimating Hang Seng's current profitability, as Hang Seng's return on equity (ROE) for the first half of 2024 is only 11.3%, while HSBC's return on tangible equity (ROTE) in Hong Kong is higher [3]. Group 3: Market Considerations - Market attention is focused on the funding sources for the transaction and subsequent shareholder buyback arrangements [3]. - If the HKD 67.5 billion premium is considered as the cost of synergy, short-term returns may fall below expectations, and the timing of realizing cost synergies needs to be monitored [3]. Group 4: Overall Assessment - The strategic significance of the privatization transaction outweighs its financial contribution, as HSBC aims to enhance asset flexibility and capital allocation efficiency [3]. - However, short-term capital pressures and market uncertainties remain, suggesting that investors should adopt a wait-and-see approach while monitoring subsequent approvals and funding developments [3].

Core Viewpoint - HSBC Holdings has made a US$13.6 billion bid to acquire the remaining 36.5% stake in Hang Seng Bank, offering HK$155 per share, which represents a 30% premium over the previous closing price, potentially creating long-term value for HSBC [1][2]. Valuation and Market Reaction - The proposal values Hang Seng Bank at HK$290 billion (US$37.3 billion), which is 1.8 times its book value, significantly higher than comparable Hong Kong peers [2]. - Following the announcement, Hang Seng Bank's stock experienced its largest intraday surge on record [3]. Management Perspective - HSBC group CEO Georges Elhedery stated that the acquisition aligns with the criteria set by HSBC in February [4]. - Analysts noted that the acquisition reflects the new management's priorities and aims to create long-term value for shareholders [6]. Analyst Opinions - Some analysts believe the offer could be improved, suggesting a reasonable price-to-book ratio should be between 2.3 and 2.5 times [4]. - Mike Leung Kit-man expressed optimism about Hang Seng Bank's prospects, indicating that the worst may be over for the bank and the Hong Kong market [5]. - Andrew Coombs from Citigroup noted that the valuation fits HSBC's calculations [7].

Core Viewpoint - HSBC Holdings is moving to take its Hang Seng Bank subsidiary private as part of a strategic overhaul, with the troubled property market in Hong Kong potentially facilitating this transition [1][2]. Group 1: Strategic Rationale - The proposal for privatization has been in development for "many months" and is not related to Hang Seng Bank's bad-debt situation, according to HSBC group CEO Georges Elhedery [2]. - Elhedery described the move as "an investment for growth" that benefits both HSBC and the Hong Kong economy [2]. - The alignment of strategies between HSBC and Hang Seng Bank is seen as overdue, as both banks currently operate relatively independently, sometimes competing with each other [5]. Group 2: Financial Implications - The privatization deal is expected to be accretive for HSBC, allowing full access to Hang Seng Bank's earnings without deducting non-controlling interests [4]. - Analysts anticipate additional benefits from revenue and cost synergies through expanded product offerings and a stronger international network [4]. - The deal could attract Hang Seng Bank's minority shareholders to sell, particularly due to concerns over the bank's non-performing loan ratios [5].

Core Points - HSBC Holdings has announced the grant of conditional awards to employees under the HSBC International Employee Share Purchase Plan on October 9, 2025 [1] - A total of 321,679.21759 shares of common stock with a par value of $0.5 per share have been allocated [1] - The awarded shares consist of 161,206.61948 shares listed on the London Stock Exchange and 160,472.59811 shares listed on the Hong Kong Stock Exchange [1]

Core Viewpoint - HSBC Holdings has granted conditional awards to employees under the HSBC International Employee Share Purchase Plan, allowing them to subscribe to a total of 322 million shares at a par value of $0.50 each, effective October 9, 2025 [1] Summary by Relevant Sections - Employee Share Purchase Plan - HSBC has issued conditional awards for 322 million shares to employees [1] - The shares have a par value of $0.50 each [1] - The effective date for this issuance is October 9, 2025 [1]