BUZZ-HSBC: at 7-mth high on report it is weighing UK retail bank spin-off

** HSBC up c.3 pct at levels last seenend-September in heavy volume

** Co mulling plans to spin off its British retail bank in a20 bln-pound deal, Sunday Times says (HSBC declines to commenton report)

** Top FTSE 100 riser & most actively traded stockon index, with 3/4 of its 90-day daily avg having gone throughin just over an hour

** HSBC ordered a review into whether it should move its HQback to roots in Hong Kong as tax & regulations in UK bite; news(Friday) met with c.3 pct share price rise; Bernstein reckonssuch a move could lift earnings by c.$1.4 bln

** A UK law forcing banks to separate their domestic retailoperations by 2019 is likely to be key in any decision. If thebank does move, it could choose to spin off its UK arm,investors have said

** Reuters reported recently executives at HSBC & rivalStandard Chartered were looking at quitting London forAsia

** StanChart shares up 2.7 pct, second-top FTSE 100 risers &4th most actively traded stock on index (RM: tricia.wright1.thomsonreuters.com@reuters.net)