HSBC's Case Against Spinoff Doesn't Convince Largest Shareholder Ping An, Bloomberg Reports

--HSBC Holdings PLC's arguments against a proposed split of its Asia operations have failed to sway Ping An, which says the bank requires urgent and radical change, Bloomberg reports, citing an unnamed source.

--According to Ping An's estimates, the spinoff is expected to 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, Bloomberg reports.

--Moreover, in the insurer's view, a spinoff wouldn't affect the cross-border wholesale banking revenues that HSBC says are at risk from any split, according to Bloomberg. Ping An's stance highlights the continuing chasm between HSBC and its largest shareholder, it says.

Full story: https://bloom.bg/3vXrpZ9

Write to Nihad Ahmed at [e-mail]

(END) Dow Jones Newswires

08-11-22 0933ET