This is a really strong analysis of the deal - the point about paying 1.7x book for a bank whose profitability is actually declining is spot on. What stikes me most is how HSBC is essentially paying a premium to move money from one pocket to another just to appease regulators in both London and Hong Kong. The whole thing feels like financial engineering dressed up as strategy. I'm wondering if minority shareholders of Hang Seng are even getting fair value here, or if they're just caught in the middle of HSBC's geopolitical balancing act.
This is a really strong analysis of the deal - the point about paying 1.7x book for a bank whose profitability is actually declining is spot on. What stikes me most is how HSBC is essentially paying a premium to move money from one pocket to another just to appease regulators in both London and Hong Kong. The whole thing feels like financial engineering dressed up as strategy. I'm wondering if minority shareholders of Hang Seng are even getting fair value here, or if they're just caught in the middle of HSBC's geopolitical balancing act.