HSBC’s biggest investor has insisted the bank is a ‘long-term investment’ amid suggestions it is looking to cut its stake.
Chinese insurance group Ping An is said to be looking to shrink its 8 per cent holding – worth £10billion – after failing to convince the London-listed lender to spin off its Asia business.
But it yesterday hit back at suggestions it was bailing out, saying: ‘HSBC is our long-term financial investment.
‘The bank has maintained unique competitive advantage in Asia. We are confident of its long-term development.’
HSBC shares grew 0.1 per cent, or 0.5p, to 697p. The stock has risen 12 per cent this year, giving the bank a value of £130billion.
Boost: HSBC has risen 12 per cent this year, giving the bank a value of £130billion
Ping An has long insisted the bank would do better if it spun off its Asia business, where it generates the bulk of its profits.
HSBC has resisted, however, and chairman Mark Tucker told the bank’s shareholders in Hong Kong last month that a spin-off of its Asian business will not happen.
But the bank has stepped up its focus on Asia and shrunk its once globe-spanning empire.
The FTSE 100 inched down 0.2 per cent or 18.39 points to 8420.26, but remains up nearly 9 per cent this year, having reached a string of record highs in recent weeks.
The FTSE 250 fell 0.4 per cent, or 72.94 points, to 20749.9.
The subdued session came after the Dow Jones Industrial Average topped 40,000 in New York for the first time ever on Thursday before giving up its gains. The Dow inched up 0.08 per cent yesterday.
Investors are grappling with the outlook for interest rates on both sides of the Atlantic.
While the Bank of England looks set to cut rates this summer – in either June or August – the Federal Reserve may wait until later in the year.
Sophie Lund-Yates, an equity analyst at Hargreaves Lansdown, said: ‘Although market enthusiasm has stalled slightly, the Footsie remains in a relatively bright mood overall.
‘This follows the Dow touching an all-time high, as positive expectations for the Federal Reserve’s interest rate plans continue to buoy sentiment.’
GSK raised £1.25billion through the sale of its last remaining stake in Sensodyne and Advil firm Haleon – nearly two years after spinning off the consumer healthcare group. GSK offloaded the shares in Haleon at 324p each, ending a gradual sell-down of its holding in the firm.
It has raised about £3.9billion in total from the stake sales, which first began in May last year.
Haleon was formed in 2019 by the merger of the consumer healthcare businesses of British pharmaceutical group GSK and US rival Pfizer, sitting as a joint venture within GSK. It was spun out of GSK as a standalone business listed on the London Stock Exchange in July 2022.
GSK initially retained a 12.9 per cent stake in Haleon but both GSK and Pfizer have been selling down their stakes in the company.
GSK shares fell 0.5 per cent, or 8.5p, to 1775p and Haleon lost 1 per cent, or 3.4p, to 329p.
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