Customers use automated teller machines (ATMs) at a HSBC Holdings Plc bank branch at night in Hong Kong, China, on Saturday, February 16, 2019.
Anthony Cowan | Bloomberg | Getty Images
HSBC Holdings shares fell more than 3% in Hong Kong on Friday after reports that its largest shareholder Ping An Insurance may look to reduce its stake in the British bank.
Despite the decline, HSBC’s share price remains at its highest levels since August 2018, trading at around HK$68 per share.
Citing people familiar with the matter, Bloomberg reported The Chinese insurance company is looking at the possibility of further reducing its stake in the bank “as it seeks to reduce its $13.3 billion position in the largest bank in Europe.”
There are several options including “further stock sales, similar to the $50 million sale unveiled last week.”
Ping An sold HSBC shares worth HK$391.49 million (US$50.19 million) On May 7, it reduced its stake from 8.01% to 7.98%.
The sale marks Ping An’s first share sale since it backed a 2023 shareholder proposal that sought to spin off its Asia business and achieve stable profits. This proposal was ultimately defeated.
“A sovereign wealth fund or super-rich investor in the Middle East obtaining a large stake is another possibility,” Bloomberg said, citing unnamed sources.
Elmore Leonard writes for Bjournal, covering news, politics, business, technology, sport, entertainment, and lifestyle. He focuses on clear, reliable reporting and useful information, helping readers stay informed about current events, emerging trends, and stories that matter.
More Stories
Amazon Suspends 21 Air Cargo Operations After Fatal Miami Runway Crash
George Lucas Unveils Long-Awaited Museum of Narrative Art in Los Angeles
Google Cloud Launches Gemini Enterprise for Legal to Automate Complex Legal Workflows