(Alliance News) - Ping An Insurance Group Co is weighing options that would allow it to reduce its 8% stake in HSBC Holdings PLC, Bloomberg reported Thursday.
One option an internal team at the Chinese insurance giant is considering is further share sales as it seeks to reduce its USD13.3 billion position in Europe’s largest lender, the report said, citing sources.
A sovereign wealth fund or ultra-rich investor in the Middle East taking a sizeable stake is another possibility, Bloomberg suggested.
Bloomberg reported the openness to reducing its stake reflects Ping An’s desire to lock in some profits from its investment and a recognition that the more dramatic changes it has pushed for at HSBC currently stand little chance of succeeding.
https://www.bloomberg.com/news/articles/2024-05-16/top-hsbc-shareholder-ping-an-exploring-ways-to-cut-13-billion-stake
Ping An has had a fractious relationship with HSBC in recent years as it campaigned for the bank to embark on a series of reforms, including spinning off its Asian arm.
In May 2023, these efforts were defeated when HSBC shareholders voted against the plans.
Ping An had cited HSBC's underperformance against its peers. It also pointed to HSBC's precarious strategy of straddling East and West amid simmering geopolitical tension between the US and China.
Shares in HSBC closed up 1.5% at 712.35 pence in London on Thursday. They have risen 18% in the last 12 months.
By Jeremy Cutler, Alliance News reporter
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