HSBC's Largest Shareholder Stresses On Asia Business Spinoff To Boost Market Values: Report

HSBC Holdings Plc's HSBC top shareholder, Ping An Insurance Group Co, isn't convinced by pushback on HSBC's spinoff of its Asia operations.
The shareholder argues that HSBC requires urgent and radical change, Bloomberg reported citing a person familiar with its views.
The report says that Ping An estimates the spinoff would generate an additional market value of $25-$35 billion, release $8 billion in capital requirements, and save on headquarter and infrastructure costs.
It believes HSBC is looking only at the downsides and challenges associated with the business spinoff.
Related: HSBC Aims To Restore Quarterly Dividend To Pre-COVID-19 Levels As Soon As Possible.
Ping An also argues that HSBC will remain a major shareholder of HSBC Asia.
The insurer's view is that the cross-border wholesale banking revenues HSBC says are at risk from any split include significant intra-Asia business, which wouldn't be affected by a spinoff.
"Debate about HSBC's structure rumbles on, stoked by largest shareholder Ping An, but as previously, we believe regulatory and strategic complications will prevent any material change," Bloomberg Intelligence analyst Jonathan Tyce wrote after HSBC's second-quarter results.
Price Action: HSBC shares are up 0.33% at $33.41 during the premarket session on the last check Thursday.
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