Customers use automated teller machines (ATMs) at a HSBC Holdings Plc bank branch at night in Hong Kong, China, Saturday, February 16, 2019.
Anthony Kwan | Bloomberg | Getty Images
Shares HSBC Holdings Hong Kong shares fell more than 3% on Friday after reports that its main shareholder Ping An Insurance may want to reduce its stake in the British bank.
Despite the fall, HSBC’s share price is still at its highest level since August 2018, trading at around HK$68 per share.
Citing people familiar with the situation, Bloomberg reported this. The Chinese insurer is considering further reducing its stake in the bank “as it seeks to reduce its $13.3 billion position in Europe’s largest lender.”
There are several options, including “a further stock sale similar to the $50 million sale the company announced last week.”
Ping An sold HK$391.49 million ($50.19 million) worth of HSBC shares. May 7, reducing its stake from 8.01% to 7.98%.
The sale marked the first sale of Ping An shares since the company backed a 2023 shareholder proposal aimed at spinning off its Asia business and setting a fixed dividend. Ultimately this proposal was rejected.
“Another possibility is a sovereign wealth fund or ultra-wealthy investor in the Middle East taking a significant stake,” Bloomberg said, citing unnamed sources.
