Chinese insurer Ping An criticized London-based bank HSBC’s management for fundamentally failing to address key business model challenges.
Ping An, in an updated proposal, has once again asked the bank to separate its Asia business into a Hong Kong-listed entity. Ping An owns an 8% stake in the bank.
- HSBC also received a strategic review proposal from individual shareholder Ken Lui in Hong Kong, asking the bank to restore dividends to 51 cents per share.
- Lui also asked HSBC to provide regular updates on strategy, including the possibility of spinning off its Asia business.
- HSBC claims the proposals lack merit, noting that alternative structural options will not deliver increased value for shareholders.
- HSBC’s annual meeting is scheduled for May 5.