HSBC and Ping An shares gain as investors await ‘debate’ about insurer’s push to split the bank’s Asia business for a Hong Kong listing

HSBC and Ping An Insurance Group advanced in Hong Kong trading amid a developing tussle between the city’s largest bank and its biggest shareholder for a break-up of HSBC’s sprawling global banking business.

HSBC’s shares closed 2.6 per cent higher at HK$49.80, their biggest one-day percentage increase in seven weeks, after swaying between a gain of 3.5 per cent and a decline of 0.8 per cent. Ping An’s shares rose 1.5 per cent to a six-day high of HK$52.15. Shares of the Shenzhen-based insurer were not in Shanghai due to a public holiday in mainland China.

“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 lender’s CEO Noel Quinn defended HSBC’s geographic span, saying the 156-year-old bank has the right strategy as the global financier for trade between East and the West. The London-based banking group doubled down on Asia in the past year, announcing a plan to shift US$6 billion from underperforming businesses in Europe and the US to growth businesses in the region. That includes sales of its American mass-market retail business and its French retail bank.