Finance
HSBC shares are falling on reports that top shareholder Ping An could sell shares
Customers use automated teller machines (ATM) at an HSBC Holdings Plc bank branch at night in Hong Kong, China, on Saturday, February 16, 2019.
Anthony Kwan | Bloomberg | Getty Images
Shares of HSBC Holdings fell more than 3% in Hong Kong on Friday after reports that it is the largest shareholder Ping an insurance may want to reduce its stake in the British bank.
Despite the decline, HSBC’s share price is still at its highest level since August 2018, trading at around HK$68 per share.
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I quote people who are familiar with the matter, Bloomberg reports this the Chinese insurer may consider further reducing its stake in the bank “as it seeks to reduce its $13.3 billion position in Europe’s largest lender.”
There are several options, including “further stock sales, similar to the $50 million sale announced last week.”
Ping An sold HSBC shares worth HK$391.49 million ($50.19 million) on May 7, reducing the stake from 8.01% to 7.98%.
The sale marked Ping An’s first share sale since it backed a 2023 shareholder proposal that aimed to spin off its Asian operations and establish fixed dividends. That motion was ultimately rejected.
“A sovereign wealth fund or ultra-rich investor in the Middle East taking a significant stake is another possibility,” Bloomberg said, citing unnamed sources.
