HSBC’s largest shareholder – Ping An – is reportedly seeking to back a resolution to spin off the British lender’s Asia business in the upcoming annual meeting.
In the upcoming annual investor meeting on May 5, Chinese insurer and HSBC’s largest shareholder Ping An will vote in favor of two resolutions tabled by individual activist investor Ken Lui, according to a «Reuters» report citing unnamed sources.
The two resolutions include a call for HSBC to restore dividends to 51 cents per share and provide regular updates on the possibility of spinning off the bank’s Asia business.
At an 8 percent shareholding in HSBC, Ping An is unable to force the issue on its own without the support of other investors.
Global Connectivity
Ping An, alongside Lui and others, has been pushing for a breakup since 2022, claiming it would improve the bank's profitability. But HSBC has repeatedly insisted that its global connectivity, which acts as a bridge between the East and West, is a key advantage.
«We remain clear that our current strategy is the fastest, safest and most value-enhancing way to deliver returns,» said a spokesperson for the bank.
