Which stocks will Hang Seng Bank shareholders consider with their US$14 billion windfall?

High-dividend yielding Hong Kong and mainland banking stocks are likely to attract investors looking to park some of the HK$106.16 billion (US$13.6 billion) windfall from the Hang Seng Bank privatisation deal, according to analysts.

They tipped Bank of China (Hong Kong) and HSBC to be among the biggest beneficiaries these investors seek as dividend-paying replacements.

About 15,000 Hang Seng Bank shareholders are expected to receive their payout cheques by February 4 in exchange for their shares, after they voted to approve the lender’s privatisation by parent HSBC on Thursday. HSBC offered HK$155 per share to buy out the remaining 37 per cent of Hang Seng Bank it did not own.

Hang Seng shareholder Charles Cheng Kai-ming, who will get HK$1.55 million from the deal, said he planned to reinvest in shares of China Construction Bank (CCB), Bank of Communications and Hong Kong Exchanges and Clearing.

“I invested in Hang Seng for its high-dividend yield,” said Cheng, 79. “I am looking for other companies that have strong assets, good earnings and a high-dividend-payout ratio.”