China’s biggest insurer Ping An boosts HSBC stake with US$39.4 million purchase amid stock sell-off
- Ping An bought 10.8 million shares on September 23 at an average price of HK$28.2859 each, before HSBC fell to a 1995 low
- HSBC is a long-term investment, Ping An Insurance spokesman reiterates on Sunday
The Shenzhen-based insurer, the world’s largest by market value, bought 10.8 million shares in the bank at an average price of HK$28.2859 per share, according to a September 25 filing. That works out to about HK$305.5 million (US$39.4 million) in outlay. The highest cost was HK$28.80 per share.
The purchase, made through its investment management unit Ping An Asset Management, lifted its ownership to 8 per cent from 7.95 per cent. A separate filing on September 27 listed BlackRock Inc, the world’s biggest asset manager, as holding a 7.14 per cent stake in the British banking group.
“All we have said previously is HSBC is a long-term investment,” a Ping An spokesman said when contacted by phone on Sunday. He declined to comment further on the stock purchase.
HSBC slumped to as low as HK$27.50 on Thursday, a level not seen since May 1995. It ended last week with an 8.9 per cent loss, bringing the slide this year to 53.7 per cent and erasing about HK$643 billion in its market value.