Ping An to tighten screws on HSBC in push for structural reform
Over the past few years, Ping An has operated behind the scenes in attempting to persuade HSBC to spin off its businesses in Asia. The Chinese insurer seems to be changing tack.
Until now, Ping An has focused on private talks with the bank over a structural revamp, in the hope that unshackling Asia from the rest of the global group will unlock higher returns. The bank’s largest shareholder made a rare public comment last November to back its case.
Perhaps HSBC could avoid an escalation of the argument should returns consistently improve and Ping An’s annual dividend income once again reach $1bn. HSBC has benefited from rising interest rates with its vast $1.3tn worth of customer deposits. But even this tailwind might be temporary.
If Ping An is insistent upon structural reform of some sort to shift more capital to Asia, the chances are there will be a protracted battle that stretches far beyond HSBC’s annual meeting. And it will not be behind closed doors.
This story originally appeared on: Financial Times - Author:Emma Dunkley
