Hsbc Holdings: RSI Oversold, KDJ Golden Cross Triggered on 15min Chart

HSBC Holdings' 15-minute chart has triggered an RSI oversold signal, coinciding with a KDJ golden cross at 10:45 AM on October 10, 2025. This indicates that the stock price has fallen significantly and is below its fundamental value, suggesting a shift in momentum towards an upward trend. There is potential for further price appreciation.

HSBC Holdings plc (HSBC) is considering the privatization of its Hong Kong subsidiary, Hang Seng Bank, with a valuation of approximately $37 billion (HK$290 billion). The move, which is part of HSBC's strategic shift, aims to enhance its market share and leadership position in the Asian region. The privatization will be executed through a scheme of arrangement, with HSBC offering HK$155 per share, a 33% premium over Hang Seng’s 30-day average closing price of HK$116.5 per share HSBC Considers Delisting of Hang Seng Bank Amid Strategic Shift^[1].

The valuation for Hang Seng, representing a 1.8 price-to-book multiple, is significantly higher than its Hong Kong peers. The scheme is expected to become effective subject to shareholder approvals and sanction by the High Court in Hong Kong. Upon completion, HSBC Asia Pacific will acquire all remaining shares of Hang Seng held by minority shareholders, and the bank will be delisted from the Hong Kong Stock Exchange HSBC Considers Delisting of Hang Seng Bank Amid Strategic Shift^[1].

The privatization is funded through HSBC's own financial resources. The company expects an initial capital impact of about 125 basis points on completion but aims to restore its common equity tier 1 (CET1) ratio to 14–14.5% through organic capital generation. HSBC will also pause its share buybacks for the next three quarters. The company continues to target a dividend payout ratio of 50% for 2025 HSBC Considers Delisting of Hang Seng Bank Amid Strategic Shift^[1].

Georges Elhedery, CEO of HSBC, stated that the offer represents a significant investment into Hong Kong’s economy and underscores the company’s confidence in the market. The proposal aligns with HSBC’s strategic shift toward areas where it has a competitive edge, enhancing growth and scale while delivering greater shareholder value than buybacks HSBC Considers Delisting of Hang Seng Bank Amid Strategic Shift^[1].

The move follows HSBC's strategic focus on the Asian region, where more than 50% of its business is centered. In mainland China, HSBC is growing its wealth business through lifestyle-focused centers, acquisitions, and digital upgrades. In India, the company is expanding rapidly, with approval to open 20 branches, adding to its current 26. These efforts aim to strengthen HSBC’s position in the Asian and global markets HSBC Considers Delisting of Hang Seng Bank Amid Strategic Shift^[1].

HSBC’s stock has rallied 44.6% this year, outperforming the industry’s growth of 37.6%. Currently, HSBC carries a Zacks Rank #3 (Hold) HSBC Considers Delisting of Hang Seng Bank Amid Strategic Shift^[1]. The bank's recent performance and strategic moves indicate a focus on growth and market leadership.

In contrast, other banks are also simplifying their business models. Bank of Montreal (BMO) is considering selling some of its U.S. branches, while Deutsche Bank AG’s data center platform, NorthC, is being prepared for sale. These moves highlight broader trends in the banking sector towards streamlining operations and focusing on core competencies JPMorgan: Hsbc Holdings (00005) plans to privatize Hang Seng Bank (00011), which will cut $7 billion in buybacks. Rating: 'Overweight'.^[2].

The 15-minute chart of HSBC's stock triggered an RSI oversold signal, coinciding with a KDJ golden cross at 10:45 AM on October 10, 2025. This suggests that the stock price has fallen significantly and is below its fundamental value, indicating a potential shift in momentum towards an upward trend .

In conclusion, HSBC's privatization of Hang Seng Bank is a strategic move aimed at enhancing its market position and delivering shareholder value. The company's focus on growth in the Asian region and its recent stock performance suggest a positive outlook for the bank.