Ping An may have funded partners in Thai's purchase of HSBC's stake

Ping An Insurance managers may have helped fund a Thai billionaire's Chinese backers in the man's purchase of HSBC's stake in the company, the website of Caixin Century Weekly said yesterday.

The report, an extract from the magazine's December 24 issue, did not name the managers involved. Ping An Insurance denied the allegation, which concerns partners in the Dhanin Chearavanont's deal to buy HSBC's 15.6 per cent stake in the insurer for US$9.4 billion.

"That's an irresponsible report. There absolutely was no such a thing," said Sheng Ruisheng, Ping An's Shenzhen-based spokesman, referring to the company management's alleged involvement in the deal.

Suthana Hongthong, a Bangkok-based spokeswoman for Charoen Pokphand Group, the Dhanin-controlled company buying HSBC's stake, declined to comment on the Caixin report.

London-based HSBC said on December 5 it had agreed to sell its stake in Ping An to three indirect wholly owned units of Charoen Pokphand in two phases. The first, comprising 20.8 per cent of the shares worth about HK$15 billion, was completed on December 7. The second, consisting of 79.2 per cent of the shares, is conditional on approval from China's insurance regulator, according to a statement from HSBC.

Citing several anonymous sources from institutional investors, Caixin said only a third of the first payment came from Thai investors, with the remainder funded by Chinese investors.