Chinese insurance giant Ping An calls for debate on HSBC’s future as it pushes potential break-up

Name: HSBC doubles down on Asia in massive staffing overhaul
Uploaded: 2022-05-02T12:08:41.000Z
Duration: 4 min 41 s
Description: HSBC doubles down on Asia in massive staffing overhaul

Ping An, HSBC’s biggest shareholder, reportedly urged the bank’s board to spin off its Asia business

Ping An ‘supports all reforms and proposals from investors that can help HSBC’s operations and long-term growth’

Reading Time:2 minutes

Why you can trust SCMP

Ping An, HSBC’s biggest shareholder, said it ‘supports all reforms and proposals from investors that can help HSBC’s operations and long-term growth’ in its first public comments after reportedly pushing to break up the bank. Photo: Nora Tam

Chad Brayin London

Published: 8:08pm, 2 May 2022Updated: 9:14pm, 2 May 2022

Ping An Insurance Group made its first public statements about HSBC on Monday as it pushes for a potential break-up of the biggest of Hong Kong’s currency-issuing banks.

The Shenzhen-based company, which is HSBC’s biggest shareholder with a reportedly 9.2 per cent of the lender’s shares, has privately approached HSBC’s board of directors about spinning off the bank’s Asia business for a separate listing in Hong Kong, according to media reports.

“We support a debate about the future of the bank,” a Ping An spokesperson 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 China’s biggest insurer 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.

04:41

HSBC doubles down on Asia in massive staffing overhaul

“We believe we’ve got the right strategy and are focused on executing it,” an HSBC spokeswoman said on Friday. “Delivering on this strategy is the fastest way to generate higher returns and maximise shareholder value.”

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.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x