HSBC could reap $26.5B from Asia spinoff, report says
Jun. 13, 2022 8:13 AM ETHSBC Holdings plc (HSBC), PIAIF, PNGAYBCSBy: Liz Kiesche, SA News Editor4 Comments
- HSBC (NYSE:HSBC) could generate an additional ~$26.5B in returns for shareholders if the bank were to break up its Asian business, according to research from Toto Consulting, which was commissioned to conduct the analysis by HSBC's largest shareholder, the U.K.'s Sunday Times reported.
- Ping An Insurance (OTCPK:PNGAY) (OTCPK:PIAIF), owns ~9% of HSBC (HSBC), and has been urging the bank for months to explore ways to bolster its returns.
- HSBC (HSBC) shares are slipping 0.6% in Monday premarket U.S. trading.
- Two other alternatives proposed in the report include spinning off the Asian business or just its Hong Kong retail operations in partial initial public offerings.
- HSBC's (HSBC) total return has risen 4.6% in the past year, outperforming the S&P 500's 6.8% decline and Barclays' (BCS) -20% drop as seen in this chart.
- Earlier in June, HSBC (HSBC) CEO Noel Quinn told China's Xinhua news that the company plans to invest more than 3B yuan ($447M) in China between 2020 and 2025.