Shares of HSBC Holdings fell over 3% in Hong Kong on Friday following reports that its top shareholder, Ping An Insurance, might be looking to reduce its stake in the British bank. Despite the decline, HSBC’s share price remains at its highest level since August 2018, trading at about 68 Hong Kong dollars per share.
Bloomberg reported that the Chinese insurer is considering options to further decrease its $13.3 billion position in Europe’s largest lender. This includes potential share sales similar to the $50 million sale disclosed last week. On May 7, Ping An sold HSBC shares worth 391.49 million Hong Kong dollars ($50.19 million), reducing its stake from 8.01% to 7.98%. This sale was Ping An’s first since it supported a 2023 shareholder motion to spin off HSBC’s Asia business and establish fixed dividends, a motion that was ultimately defeated. Additionally, Bloomberg mentioned that a sovereign wealth fund or an ultra-rich investor from the Middle East taking a sizable stake in HSBC is another possibility.