HSBC defends its global span to fend off Ping An’s break-up call as it doubles down on its Asia pivot
- Ping An recommended HSBC spin off Asia business, list in Hong Kong, according to reports
- Risk of geopolitical firestorms, dividend suspension two years ago has prompted some investors to call for a split
The London-headquartered bank, which traces its roots to Hong Kong and earns almost two-thirds of its pre-tax profit in Asia, said it has the right strategy as the global financier for trade between the East and the West.
“First and foremost, we remain a global institution serving our clients on a global basis, but [with] particular unique strengths within our global franchise,” the bank’s chief executive Noel Quinn said during its annual shareholders meeting, emphasising HSBC’s worldwide presence. “One of those is Asia, one of those is the Middle East and one of those is the UK.”
HSBC is on the defensive amid media reports that its biggest shareholder Ping An Insurance Group is pushing to spin off the bank’s Asia business for a separate listing in Hong Kong. Bloomberg and the Financial Times reported that Ping An, with an 8.2 per cent stake at the end of March, has held discussions with HSBC’s board, both citing people familiar with the matter.
HSBC would not confirm that it had been approached by Ping An about the break-up, but said it regularly engages with investors and is committed to “maximising value for all our shareholders.” Ping An, based in Shenzhen, declined to comment.
