This paper investigates the transceiver design for downlink hybrid mmWave multi-user multi-carrier massive MIMO systems. In order to balance the processing complexity and the design flexibility, we adopt a prevalent hybrid precoding technique named hybrid block diagonalization (HBD) for downlink multi-user transmission. Aimed at maximizing the end-to-end mutual information (EEMI), a novel virtual EEMI assisted two-stage HBD scheme is judiciously devised. Apart from a low implementing complexity, the developed scheme is a more generic HBD solution, as it not only takes the frequency selectivity into account, but also removes the reliance on the high-resolution analog network. Simulations show that, even when applied with an inferior hardware configuration, the proposed HBD could still remarkably outperform its counterparts in terms of the EEMI performance at different levels of channel sparsity.