Proactive Investors - HSBC Holdings PLC (LON:HSBA) major shareholder Ping An will reportedly hold its US$13.3 billion stake in the bank despite speculation it was looking for an exit.
A Reuters-cited source said on Friday that Ping An would “continue to hold the investment” and that the asset manager was “positive about HSBC”.
This came after Bloomberg reported on Thursday that Ping An was considering options to wind down the 8% stake in HSBC.
Ping An has repeatedly clashed with HSBC, most recently voting against reappointing outgoing chief executive Noel Quinn to the bank’s board of directors.
Quinn had faced criticism from Ping An over dividends and its base remaining in London, with the asset manager backing proposals by Hong Kong-based investor Ken Lui to spin off HSBC’s Asian business last year.
Citing moves by HSBC to step up its Asia pivot, Citi said the “fraught” relationship with Ping An had appeared to improve recently.
“Many of the issues publicly raised by PingAn have been addressed and the bank is now a high-yielding investment once more,” analysts noted.
That said, Ping An has sold US$50 million worth of HSBC shares this month, seeing it drop behind BlackRock (NYSE:BLK) among the bank’s largest shareholders.
Whether Ping An ultimately does sell the position in HSBC remains unclear, Citi analysts added.
“If it were to do so, we expect this would be over a prolonged period to maximise value.”