Ping An Ups Stake in HSBC
After snapping up a sizable block of shares Chinese insurance giant Ping An emerged as HSBC's second-largest shareholder.
The Shenzen based insurer increased its interest in the U.K. bank from 4.96 per cent to 5.01 per cent via its asset management unit. Ping An's £7.3 billion stake now makes it HSBC's second largest shareholder behind Blackrock, HSBC's largest backer, and can be seen as a vote of confidence in HSBC's new management team.
Ping An said its investment is financially motivated and based on HSBC's track record of paying a dividend. Although based in London HSBC earns the majority of its revenue from Asia and has been emphasizing its commitment to the region.
The lenders mantra of «A pivot to Asia» is driving higher returns and lending growth, particularly in Hong Kong, according to Stuart Gulliver, HSBC group chief executive. The Chinese insurance group expanded its position via a Stock Connect programme, which allows mainland firms to invest in Hong Kong shares.
