Ping An is to be nominated as a board member by HSBC

This week, as the global lender prepares to meet with Hong Kong shareholders, a Hong Kong lawmaker has requested that HSBC separate its Asia subsidiary and appoint Chinese insurer Ping An to its board.

In order to improve shareholder value, Ping An Insurance Group Co., Ltd., the bank's biggest shareholder, asked in April that London-based HSBC consider strategic options such as spinning off its key Asian division.

Several retail investors in Hong Kong who were initially displeased with HSBC's proposal to cease its dividend payout in 2020 have now welcomed the move.

"We advise HSBC to divide its Asian business units. Restoring Hong Kong's main listing is the best way to protect minority shareholders' interests "Hong Kong district council member Christine Fong said in a Sunday Facebook (NASDAQ:META) post.

She said, "Having learnt our lesson from the 2020 dividend cancellation, we wholeheartedly support Ping An's candidacy to the HSBC board."

Approximately 65 percent of HSBC's stated earnings before taxes in 2021 came from Asia, with Hong Kong serving as the bank's biggest market.

The banking giant has hired advisors, including the London-based boutique investment company Robey Warshaw, to assist in a review of its strategy, but has made no direct response to Ping An's inquiries.

Sunday, HSBC did not immediately respond to a request for comment from Reuters.

According to Fong, "more than 500 HSBC retail investors" support the proposal.

The office of Fong did not immediately respond to Reuters' request for comment.

Tuesday will be the first genuine meeting between HSBC management and Hong Kong shareholders since the COVID-19 pandemic. Group Chairman Mark Tucker and Chief Executive Officer Noel Quinn will preside over the meeting.

HSBC is expected to prolong the campaign initiated by Ping An, sources told Reuters earlier this month. The midyear results of HSBC will be released on Monday.

According to them, HSBC might respond by accelerating its exit from non-core markets and dedicating more resources in Asia.