MARKET REPORT: China’s Ping An insists it won’t save HSBC

HSBC’s biggest investor has insisted the bank is a “long-term investment” amid suggestions the bank is looking to reduce its stake.

Chinese insurance group Ping An is said to be looking to reduce its 8 percent stake – worth £10 billion – after failing to convince the London-listed lender to spin off its Asian operations.

But yesterday the company backtracked on suggestions it wanted to save, saying: ‘HSBC is our long-term financial investment.

‘The bank has maintained a unique competitive advantage in Asia. We have confidence in the long-term development.’

HSBC shares grew by 0.1 percent, or 0.5p, to 697p. The stock is up 12 percent this year, valuing the bank at £130 billion.

Ping An has long insisted the bank would do better if it spun off its operations in Asia, where it generates most of its profits.

However, HSBC has resisted and chairman Mark Tucker told the bank’s shareholders in Hong Kong last month that a spin-off of the Asian operations will not happen.

But the bank has increased its focus on Asia and shrunk its once global empire.

The FTSE 100 fell 0.2 percent, or 18.39 points, to 8,420.26, but remains up nearly 9 percent this year after hitting a string of record highs in recent weeks.

The FTSE 250 fell 0.4 percent, or 72.94 points, to 20749.9.

The subdued session came after the Dow Jones Industrial Average touched the 40,000 mark for the first time in New York on Thursday before giving up its gains. The Dow Jones rose 0.08 percent yesterday.

Investors are grappling with the outlook for interest rates on both sides of the Atlantic.

Although it looks like the Bank of England will cut rates this summer – in June or August – the Federal Reserve may wait until later this year.

Sophie Lund-Yates, equities analyst at Hargreaves Lansdown, said: ‘Although market enthusiasm has waned somewhat, the Footsie remains in a relatively optimistic mood overall.

“This follows the Dow Jones hitting an all-time high as positive expectations about the Federal Reserve’s rate plans continue to boost sentiment.”

GSK raised £1.25 billion through the sale of its last remaining stake in Sensodyne and Advil company Haleon – almost two years after spinning off the consumer healthcare group. GSK has sold shares in Haleon for 324p each, ending the gradual sale of its stake in the company.

It has raised a total of around £3.9 billion from the share sale, which first began in May last year.

Haleon was formed in 2019 through the merger of the consumer healthcare businesses of British pharmaceutical group GSK and US rival Pfizer, which were a joint venture within GSK. It was spun out of GSK in July 2022 as a standalone company listed on the London Stock Exchange.

GSK initially retained a 12.9 percent stake in Haleon, but both GSK and Pfizer have sold their stakes in the company.

GSK shares fell 0.5 percent, or 8.5 cents, to 1,775 cents and Haleon lost 1 percent, or 3.4 cents, to 329 cents.