Privatization of Hang Seng Bank: Shareholders have approved the privatization of Hang Seng Bank, leading to its delisting on January 27, which aligns with JPMorgan's expectations despite the earlier completion date.

Positive Outlook for HSBC Holdings: JPMorgan views the privatization as beneficial for HSBC Holdings, allowing for better management guidance on synergies and an improvement in its CET1 ratio.

Market Predictions: Citi has raised HSBC Holdings' target price to $138.3, forecasting a return on tangible equity (RoTE) of 19-20% for 2027-28.

Constructive View on Hong Kong Banking: JPMorgan maintains a positive outlook on the Hong Kong banking sector, highlighting HSBC Holdings and Standard Chartered as top picks due to a strong stock market and recovering real estate market.

Market Performance: The HSI rose by 82 points (0.3%) to 26,231, with total market turnover reaching HKD245.13 billion. The HSCEI and HSTECH also saw slight increases, closing at 9,048 and 5,687 respectively.

Stock Highlights: Hang Seng Bank and HSBC Holdings both increased by 0.4%, while CKH Holdings surged 3.7% after appointing Goldman Sachs and UBS for a listing. Notable tech stocks like Alibaba and JD-SW experienced gains, while Tencent and Meituan saw declines.

AI-Related Stocks: Stocks related to AI showed significant growth, with Knowledge Atlas jumping 20.6% and XTALPI rising 10.5%. However, Unisound faced a sharp decline of 11.3%.

New Listings: MINIMAX-WP debuted at HKD345, marking a 109% increase from its listing price of HKD165, indicating strong investor interest in new offerings.

Market Overview: Hong Kong stocks showed slight gains in the morning session, with the HSI up 8 points to 26,158 and total half-day turnover reaching $135.217 billion.

Stock Movements: HANG SENG BANK rose 0.3% following the approval of its privatization, while HSBC HOLDINGS fell 0.6%. CKH HOLDINGS increased by 1.5% as it sought dual listing support from Goldman Sachs and UBS.

AI-Related Stocks Performance: Several AI-related stocks, including GDS-SW and FOURTH PARADIGM, saw gains of over 3%, while KNOWLEDGE ATLAS surged by 14.9%. Conversely, UNISOUND experienced a significant drop of 9.5%.

IPO Highlights: The IPO MINIMAX-WP saw a remarkable increase of 80.5%, trading at $294, significantly above its initial listing price of $165.

Privatization Approval: Hang Seng Bank's privatization proposal from HSBC Holdings has been approved, with the bank set to be delisted on January 27.

Transaction Timeline: UBS anticipates that the privatization will expedite the transaction completion by 4-5 months, with HSBC expected to provide further financial details on February 25.

Market Reactions: Citi has raised its target price for HSBC Holdings to $138.3, predicting a 19-20% return on tangible equity in 2027-28, while UBS maintains a Neutral rating with a target price of GBP10.35.

Short Selling Data: Recent short selling figures indicate a significant amount for both Hang Seng Bank and HSBC Holdings, reflecting market sentiment.

Market Performance: The HSI opened 123 points higher at 26,272, with notable gains in the HSCEI and HSTECH, while several tech stocks like BABA-W and JD-SW saw significant increases.

Company Updates: Hang Seng Bank's privatization resolution was approved, leading to a slight increase in its stock price, while HSBC Holdings and CKH Holdings also experienced minor gains.

Inflation Data: China's year-on-year inflation rate for December was reported at 0.8%, slightly above the previous value of 0.7% but below the forecast of 0.9%.

New Listings: New stocks like MINIMAX-WP, JINXUN RESOURCE, and RIBOLIFE-B opened significantly higher than their listing prices, indicating strong market interest.