Things could come to a head on May 5 at HSBC’s annual investor gathering in London when shareholders vote on whether the bank should commit to structural reforms, after a resolution was added to the agenda by an activist investor who claims support from Ping An. With the worst timing possible, HSBC’s defence against this campaign lost some clarity in May 2’s first-quarter results.
HSBC Holdings made a clear and compelling case for hanging on to its Asian business when its biggest shareholder, Ping An Insurance Group, started calling for a break-up of the London- and Hong Kong-listed bank last year. But ahead of a likely fractious shareholder meeting on May 5, the lender has muddied the waters.
Ping An wants the bank to spin off or partially list its Asian business in Hong Kong to win the higher valuation that it reckons local investors would award a regional business. HSBC has argued that a split would increase costs and cause a loss of revenue from global corporate and wealth customers. The bank also said it was already shifting its balance sheet-focus towards Asia.
