HSBC, Ping An executives set to meet to discuss breakup plans - report

4th May 2022 11:53

(Sharecast News) - HSBC and Ping An executives are reportedly planning to meet in mid-May to discuss the Chinese insurer's proposal that the bank should explore strategic options such as a spinoff of its Asian business.

Reuters cited a source familiar with the matter as saying that Ping An - China's largest insurer and HSBC's biggest shareholder - called last week on the bank to look at ways to boost returns.

HSBC has not commented on Ping An's proposal but defended its structure last week, saying in a statement that it believed it had the right strategy and was focused on delivery.

As of 11 February, Ping An owns an 8.23% stake in HSBC.

It's understood that Ping An believes that geopolitical tensions between the UK and US and China are weighing on the stock's valuation.