HSBC shares rebound after China’s Ping An boosts its holding
HSBC shares in Hong Kong and London rose sharply on Monday after Chinese asset manager Ping An, the bank’s largest shareholder, increased its stake in the lender.
In a regulatory filing late on Friday, Ping An revealed it had raised its holding in the lender from 7.95 per cent to eight per cent.
HSBC’s Hong Kong-listed shares rose 9.93 per cent overnight following the news, while the bank’s London-listed stock climbed just over 10 per cent shortly after the open this morning.
Shares in the Asia-focused bank slumped to a 25-year low last week following allegations of money-laundering following the FinCEN files leak and concerns over HSBC’s vulnerability amid worsening US-Chinese relations.
The bank’s London-listed shares have fallen almost 47 per cent this year amid the economic fallout from the coronavirus pandemic.
Alongside all UK-based lenders, HSBC scrapped its dividend in March amid pressure from the regulator, but the bank has come under pressure from Hong Kong shareholders over the decision to cancel investor payouts.
The bank has also been the target of attacks by Chinese state media over its role in the US government’s case against Huawei chief financial officer Meng Whanzou.
Last week state-run newspaper the Global Times reported that HSBC was being considered for inclusion on the Chinese government’s so-called “unreliable entities” list of firms that have allegedly harmed China’s interests — something that would threaten the bank’s Chinese operations.