Listen to this article
Give us your feedback Thank you for your feedback.
What do you think?
Ping An has emerged as the second biggest shareholder in HSBC after the Chinese insurer increased its stake in Europe’s largest bank to above 5 per cent, triggering a disclosure filing.
Ping An’s asset management arm acquired an additional 10m HSBC shares on Tuesday, taking the group’s total holding in the bank from 4.96 per cent to 5.01 per cent, according to a regulatory filing to the Hong Kong Stock Exchange.
The stake – worth about £7.3bn ($9.8bn) at current market prices – makes Ping An HSBC’s second largest shareholder after BlackRock, according to Bloomberg data.
The revelation of Ping An’s stake, which is the world’s largest insurer by market capitalisation and fourth largest by total assets, comes just weeks after HSBC announced plans for John Flint, its head of retail banking and wealth management, to succeed Stuart Gulliver as chief executive early next year.
The CEO succession process was the first big decision by Mark Tucker, who took over as chairman of HSBC in October having spent more than eight years running AIA, one of the main rivals to Ping An in the Asian insurance market.
The latest share buying can be seen as a vote of confidence in the lender’s new management team.
“HSBC’s business performance is excellent and its dividends are good,” the Chinese insurer said in a statement. “This complements the assets and liabilities matching principles of Ping An Asset Management’s insurance funds.”
HSBC, which earns three-quarters of its profits in Asia and was founded in Hong Kong and Shanghai more than 150 years ago, said: “Ping An is a non-state owned public company with excellent corporate governance and stable operations.”
The largest shareholder in HSBC is BlackRock, which owns almost 6.8 per cent of the bank across various funds that it manages. The bank’s third-largest investor is JPMorgan Chase, which owns just over 4.8 per cent.
Shares in HSBC have risen 11 per cent in the past year, helped by the bank’s strong profit growth in the first nine months of this year and its decision to return billions of dollars of excess capital to shareholders via share buy-backs.