Foreign media reported that China Ping An (2318), the largest single shareholder of HSBC (0005), asked the group to spin off its Asian business for listing.
The report quoted people familiar with the matter as saying that Ping An (2318) has negotiated with the board of directors of HSBC (0005) to spin off its Asian business and list it independently in Hong Kong.
Ping An believes that the spin-off of HSBC's Asian business will result in higher profits, less capital requirements, and greater control and independent decision-making power for local management.
According to HSBC's annual report, Ping An held more than 8% of HSBC's shares at the end of last year.
A spokesman for Ping An declined to comment in response to media inquiries, while a spokesman for HSBC did not immediately respond to comment.
Stimulated by the news, HSBC London's share price rose by more than 4%, and the closing gain narrowed to 1.47%.
It is worth mentioning that on the eve of HSBC’s announcement of its first-quarter results on Tuesday, anonymous fund shareholders have expressed their appeals, hoping that the board of directors of HSBC will divide the bank into two, including the establishment of a Hong Kong-listed company headquartered in Hong Kong and focusing on Asian business. In order to avoid geopolitical risks and unlock greater valuations.
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