On Monday, Ping An Asset Management bought over one billion ordinary shares via the stock connect that links the Hong Kong and mainland Chinese bourses.
The acquisition pushed its stake to 5.04%, which triggered a stock exchange notification on Wednesday.
Based on HSBC’s closing price on that day, Ping An AM’s stake is worth around HK$77.5bn (£7.4bn, $9.9bn, €8.4bn).
The Chinese asset manager trails only BlackRock, which holds a 6.99%, as HSBC’s largest shareholder. The third largest investor is JP Morgan Chase with just over 4.8%.
Financial move
“HSBC’s business performance is excellent and its dividends are good,” the Chinese insurer said in a statement, reports the Financial Times. “This complements the assets and liabilities matching principles of Ping An Asset Management’s insurance funds.”
HSBC’s outgoing group chief executive Stuart Gulliver told reporters that Ping An’s investment is a financial move and not a strategic one, reports Market Watch, a Dow Jones & Co publication. Gulliver said the bank welcomed the investment having been in regular contact with Ping An since the insurer started building its stake in 2Q16.
In October, it was confirmed that John Flint, chief executive of retail banking and wealth management, will succeed Gulliver when he retires in February 2018.
