Ping An Group Pushes for Break up of HSBC Following Bank of England Dividend Restrictions

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Chinese insurance giant Ping An Group is pushing for the break-up of multinational banking giant HSBC following efforts by the UK central bank to restrict dividend payments.

Ping An, one of HSBC’s biggest shareholders, wants HSBC to split its global operations into two separate regional blocs – one in the West and the other in Asia.

The move comes after the poor performance of HSBC shares, as well as the Bank of England’s (BoE) decision to restrict dividend payments by UK banks at the outset of the pandemic.

Ping An, which holds a 9.2% stake in HSBC, previously made use of the dividends to offset liabilities for its life insurance reserves.

Observers say that the division of the lender will stymie the impact of regulatory decisions made far away from the Asia-Pacific, by creating a Hong Kong-based lender which is more regionally focused and beholden.