News Sharing
For sharing news, please enter the email address of you and the receiver, then press SEND button.*Mandatory Fields
Receiver*
Enter email addresses, separated by semicolon (;). E.g. a@a.com;b@b.com
Your email address*
Content Sharing
<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...
Reset
Send
The window will close in 5 seconds
<Research>CICC: Decline in Div./ Buyback Yield Caused by HANG SENG BANK Privatization May Drag HSBC HOLDINGS Temporarily
Close
Recommend
23
Positive
29
Negative
27
 
 

HSBC HOLDINGS (00005.HK)  -3.800 (-2.724%)    Short selling $517.81M; Ratio 26.092%   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 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 NewsMorningstar: De Giorgi's Departure as CFO Expected to Have Limited Impact on STANCHART's Operations
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)  -8.100 (-4.175%)    Short selling $69.29M; Ratio 19.128%   8.8%.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-02-13 16:25.)

AAStocks Financial News

Copyright(C) AASTOCKS.com Limited 2000. All rights reserved.
Disclaimer: AASTOCKS.com Ltd, HKEx Information Services Limited, its holding companies and/or any subsidiaries of such holding companies endeavour to ensure the accuracy and reliability of the Information provided but do not guarantee its accuracy or reliability and accept no liability (whether in tort or contract or otherwise) for any loss or damage arising from any inaccuracies or omissions.