British banking giant HSBC said Wednesday it is selling its entire 15.57 percent stake in China’s Ping An Insurance Group for around $9.4 billion.
HSBC would sell the stake in China’s second-largest life insurer to subsidiaries of Thailand’s Charoen Pokphand Group, according to an HSBC statement to the Hong Kong Stock Exchange.
HSBC said unloading the stake would allow the bank to offer more long-term value to its shareholders.
“China remains a key market for the group and we will strengthen our focus on growing our own operations and building on our long-term strategic banking partnership with the Bank of Communications,” HSBC Group Chief Executive Stuart Gulliver said in the statement.
HSBC holds around 19 percent in the Bank of Communications, China’s fifth largest lender.
The British bank has been selling non-core assets as part of a broad restructuring plan designed to boost profitability.
Ping An has recently been hit by controversy, after the New York Times said last month that relatives of Chinese Premier Wen Jiabao gained from Ping An’s overseas listing by buying stock at a discount.
Ping An has denied those claims and threatened legal action.
HSBC says to sell stake in China insurer Ping An
