(23 November 2012 – China) HSBC will sell its stake in Ping An Insurance Group – China’s second-largest insurer.The bank has a US$9.3 billion (A$8.9 billion) stake in Ping An and is currently in talks with several interested investors, HSBC plans to sell all of its 1.23 billion Hong Kong-traded shares in the insurance company.
HSBC has a current strategy to peel away non-core businesses to raise cash to meet stricter regulatory requirements and boost profitability.
Among those reportedly interested in HSBC’s stake in Ping An is Thailand’s Charoen Pokphand Group.
While the sale of the shares could give HSBC a record pre-tax profit of up to US$6.5 billion, the insurer has been an important profit generator for the bank.
Ping An’s third-quarter profit rose 21 percent to 2.13 billion yuan (A$32 million) as its banking unit contributed more revenue and premium income expanded.