Ge Long Hui A P P·2025-10-10 02:33Core 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]