HSBC defeats Asia spin-off proposal in AGM voting

EUROPE’S biggest bank HSBC defeated a resolution from Hong Kong-based shareholders and backed by major investor Ping An to potentially spin-off its lucrative Asia business, the bank’s chairman Mark Tucker said on Friday (May 5).

Tucker told investors at the end of the annual investor meeting held in Birmingham in England that shareholders had backed the board in all resolutions.

The special resolutions submitted by individual investor Ken Lui recommending the bank boost dividends and review its strategy were both defeated, Tucker said. Final voting results will be published later on Friday.

A HSBC spokesperson said that apart from Ping An, none of the bank’s top 50 shareholders voted against the board and a “strong majority” of retail shareholders also backed the lender.

“The overwhelming majority of shareholders, excluding Ping An, have voted to draw a line under the debate on the structure of the bank,” the spokesperson added.

Turnout in the voting was around 50 per cent, the spokesperson said, meaning the final results will likely still show a sizeable rebellion against the board, as Ping An’s shareholding would translate to a vote share of 18-19 per cent. REUTERS