(3 May 2022 – Asia) HSBC is facing calls by its largest shareholder, Chinese insurer Ping An, to break up its business by separating the Asia operations.
Ping An, which owns an 9.2% stake in the lender, has privately approached HSBC's board of directors about spinning off the bank's Asia business for a separate listing in Hong Kong. The insurer has been calling for HSBC to explore a reorganisation, with an eye on boosting its valuation, as well as simplifying its regulatory requirements around the globe.
“We support a debate about the future of the bank,” a spokesperson for Ping An said. “We want shareholders to participate in the debate and to propose solutions for HSBC. Ping An supports all reforms and proposals from investors that can help HSBC’s operations and long-term growth.”
The public statements by Ping An came just days after the London-based bank defended its strategy, arguing that its global scope linking trade and business from the East to West is the best way forward for the 157-year-old institution, which traces its roots to Hong Kong and Shanghai.
The lender's CEO, Noel Quinn, has doubled down on Asia in the past year, announcing a plan to shift US$6 billion from underperforming businesses in Europe and the United States to growth businesses in the region. That includes sales of its American mass-market retail business and its French retail bank. HSBC earns almost two-thirds of its pre-tax profit in Asia.