BUZZ-HSBC: move to HK could see almost $1.4 bln boost to earnings, Bernstein says

** The math behind HSBC returning its HQ to the bank's roots in Hong Kong makes sense, says Bernstein analyst Chirantan Barua

** A move to HK would eliminate the need to pay more than three-quarters of that levy -- a potential boost to earnings of almost $1.4 bln, according to Bernstein. Costs associated with shifting domicile to HK not likely to be more than $1.5 bln, broker adds

** HSBC paid a UK bank levy of $1.1 bln last year, and this levy could rise to $1.8 bln to as much as $2.2 bln if a Labour govt is elected in the UK in two weeks time, Barua says

** HSBC, Europe's largest lender, has ordered a review into whether it should move its HQ (Stockholm: HQ.ST - news) out of Britain. The new was greeted by a 2.8 pct rise on its share price

** One caveat, according to Barua, is how accepting the HKMA will be of HSBC's $2.5 trillion balance sheet but with capital levels almost 50 pct more than pre-2007 levels should give them some comfort

** ** HSBC and smaller rival Standard Chartered (Other OTC: SCBFF - news) shifting HQs would leave the UK govt with a £1.8 bln hole today and a nearly £1.7 bln hole under the Labour party's financial plans, Bernstein estimates (RM (LSE: RM.L - news) : vikram.subhedar.thomsonreuters.com@reuters.net)