Ping An Becomes HSBC's Strategic Shareholder
December 06 2017 - 8:08PM
Dow Jones News
By Joanne Chiu
Ping An Insurance (Group) Co.'s (2318.HK) first-time disclosure
that it holds a 5.01% stake in global banking giant HSBC Holdings
Plc. (0005.HK) highlights the Chinese insurer's attempt to boost
its financial investments to improve returns.
The Hong Kong and Shanghai-listed insurer has cumulatively
bought 1.02 billion shares of HSBC through the southbound Stock
Connect program, which allows mainland Chinese companies to buy
Hong Kong shares, making it one of HSBC's significant investors,
Ping An said in a statement late Wednesday.
Ping An last week unveiled that it had boosted its stake in
China's top lender Industrial & Commercial Bank of China to 8%
from 7.9%, for around HK$483 million (US$61.8 million). The latest
disclosure also marks a reversal of Ping An's historical
relationship with the U.K. bank, which in 2012 sold its 15.6% stake
in the Chinese insurer to a conglomerate controlled by Thailand's
tycoon Dhanin Chearavanont for US$9.39 billion.
Ping An said that investing in HSBC is a financial investment
given the bank's strong business performance and good dividend.
"This complements the assets and liabilities matching principles of
Ping An Asset Management's insurance funds," it said.
Write to Joanne Chiu at joanne.chiu@wsj.com
(END) Dow Jones Newswires
December 06, 2017 19:53 ET (00:53 GMT)
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