Ping An outlined his plan to split the company to the HSBC board, according to earlier media reports, which also cited people familiar with the matter.
Ping An declined to comment.
HSBC did not comment on Ping An’s involvement, but defended its overall strategy in a statement on Friday.
“We believe we have the right strategy and we are focused on executing it,” a bank spokesman said by email.
The plan would unlock greater value for HSBC shareholders by separating its operations in Asia, where the bank makes most of its profits, from other parts of its business, according to reports.
CEO Noel Quinn, who has led HSBC for more than two years, has doubled down on Asia by moving global executives there and pumping billions of dollars into it.
world leaders and injecting billions of dollars into the lucrative wealth management industry.
lucrative wealth management business, with a focus on the region.
Some analysts have already called on HSBC to split up its global operations, arguing the bank is unable to meet its targets.
its global operations, arguing that the bank earns most of its revenue in Asia and that its global network adds additional costs without providing enough benefit.
GOPOLITICAL TENSIONS
HSBC navigated escalating political tensions between China, Europe and the United States.
“The proposal makes some sense in a political context, but HSBC has a foothold in both the West and Asia,” John Cronin, a banking analyst at Goodbody, said Friday.
Reuters reported last year that Beijing had
disenchanted with HSBC over sensitive legal and political issues
international organizations, from Chinese repression in Hong Kong to the indictment of
the indictment by the United States of an executive of the Chinese national champion of tech
champion of Chinese technology Huawei Technologies. The frame was released in
september.
In 2016, the bank decided to keep its head office
London, rejecting the option of moving its center of gravity
center of gravity Hong Kong, the main profit-generating center, after a
10 month exam.
Last year, HSBC made 52% of its total turnover of 49.6
billion last year, and 65% of its reported pre-tax profit.
in the region, with Hong Kong being its largest market.
The bank is listed in both London and Hong Kong.
Ping An had an 8.23% stake in the banking giant as of February 11, according to Refinitiv data.
British media first described the plan last week, without identifying the shareholder.