Skip to content
Markets
City of London

Ping An Rejects HSBC’s Defense Against Spinoff

  • Insurer says spinoff would boost market values, source says
  • HSBC executives argued against split at second-quarter results
The HSBC Holdings Plc headquarters building, in Hong Kong.

The HSBC Holdings Plc headquarters building, in Hong Kong.

Photographer: Louise Delmotte/Bloomberg
Updated on

Ping An Insurance Group Co. isn’t convinced by HSBC Holdings Plc’s case against a proposed spinoff of its Asia operations, arguing the lender is in need of urgent and radical change, according to a person familiar with its views. 

The insurer estimates a spinoff would generate additional market value of $25 billion to $35 billion, release $8 billion in capital requirements, and save on headquarter and infrastructure costs, the person said. It believes that HSBC has only emphasized the downsides and challenges of spinning off the business.