Ping An says HSBC just repeating past rebuttals of spinoff plan

HSBC’S biggest shareholder Ping An said on Friday (Apr 21) the bank had “merely repeated” past rebuttals of the Chinese insurer’s proposals that the lender spin off its Asia business, continuing a tit-for tat war of words between the pair.

HSBC, which on Wednesday said it had studied Ping An’s ideas but found them destructive of shareholder value, has failed to engage in “deep discussions” over Ping An’s ideas, the latter said in its latest statement on Friday.

“As in accordance with the fundamental principles of global corporate governance principles, HSBC should at least respect their shareholders and their concerns or views,” Ping An chairman Huang Yong said in the emailed statement.

HSBC and its biggest investor have been engaged in a public battle since last November, when sources close to Ping An began urging the bank to hive off its profitable Asia business to deliver better returns to shareholders.

The spat has become more heated in recent weeks ahead of HSBC’s annual shareholder meeting on May 5, when investors will vote on a resolution requiring the bank to deliver regular updates on strategic ideas such as Ping An’s spinoff plan.

Ping An has accused HSBC of only paying lip service to its ideas.

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“HSBC has had extensive and senior-level engagement with Ping An in 2022 and 2023, comprising approximately 20 meetings at chairman, CEO, CFO and senior management level,” a spokesperson for the bank said on Wednesday. REUTERS