HSBC’s (HSBA) ongoing argument with its largest shareholder, Chinese insurance company Ping An, shows no sign of abating ahead of a key annual general meeting on 5 May.
The insurer has already indicated that it will vote in favour of resolution 17, a push from retail Hong Kong shareholders, which requests that “HSBC devises, implements and reports quarterly on a plan and strategy aiming at increasing its value by structural reforms including but not limited to spinning off, strategic reorganisation and restructuring its Asia businesses”.
While it is not as dramatic as a formal vote on splitting up the bank, it would bind management to a plan to achieve that end. The heart of the matter is whether it is possible to restructure HSBC in its current form and whether investors should start to factor into the bank’s share price what a sum-of-the-parts valuation would look like.