HSBC Shares Drop 3% as Top Shareholder Ping An Considers Stake Reduction

According to sources familiar with the matter, Bloomberg reported that an internal team at the Chinese insurance giant is contemplating various options, including additional share sales, akin to the $50 million sale disclosed last week. Ping An has clashed with HSBC’s management in recent times, notably backing a shareholder motion in 2023 advocating for the spin-off of its Asia business and the establishment of fixed dividends.

Shares of HSBC Holdings dropped over 3% in Hong Kong on Friday following reports that its top shareholder, Ping An Insurance, might be considering reducing its stake in the British bank.

Despite the decline, HSBC's share price remains at its highest level since August 2018, trading at approximately 68 Hong Kong dollars per share.

According to sources familiar with the matter cited by Bloomberg, the Chinese insurer is exploring the possibility of further reducing its stake in the bank as part of an effort to decrease its $13.3 billion position in Europe's largest lender.

Several options are being considered, including additional share sales, similar to the $50 million sale disclosed last week.

On May 7, Ping An sold HSBC shares valued at 391.49 million Hong Kong dollars ($50.19 million), reducing its stake from 8.01% to 7.98%.

This sale marked the first disposal of shares by Ping An since it supported a shareholder motion in 2023 that aimed to spin off its Asia business and establish fixed dividends. However, this motion was ultimately defeated.

Bloomberg also mentioned the possibility of a sovereign wealth fund or wealthy investor from the Middle East acquiring a significant stake, citing unnamed sources.

Source: CNBC‍