Customers use automated teller machines (ATMs) at a HSBC Holdings Plc bank branch at night in Hong Kong, China, on Saturday, February 16, 2019.
Anthony Cowan | Bloomberg | Getty Images
shares HSBC Holdings fell more than 3% in Hong Kong on Friday after reports that its largest shareholders Ping An Insurance It may look to reduce its stake in the British bank.
Despite the decline, HSBC's share price remains at its highest levels since August 2018, trading at around HK$68 per share.
Citing people familiar with the matter, Bloomberg reported that the Chinese insurer is eyeing the possibility of further reducing its stake in the bank “as it seeks to reduce its $13.3 billion position in Europe’s largest bank.”
There are several options including “further stock sales, similar to the $50 million sale unveiled last week.”
Ping An sold HSBC shares worth HK$391.49 million ($50.19 million) on May 7, reducing its stake from 8.01% to 7.98%.
The sale marks the first sale of Ping An shares since it backed a 2023 shareholder proposal that sought to spin off its Asia business and achieve stable profits. This proposal was ultimately defeated.
“A sovereign wealth fund or super-rich investor in the Middle East obtaining a large stake is another possibility,” Bloomberg said, citing unnamed sources.
