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China’s Ping An sells HSBC shares in US$50 million tantrum after reported protest vote against CEO Noel Quinn
- Insurer has sold about 5.6 million HSBC shares, reducing its stake in the lender to 7.98 per cent from 8.01 per cent, according to an exchange filing
- Move comes days after reports that Ping An voted against the re-election of departing HSBC CEO Noel Quinn as a director
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China’s largest insurer Ping An Insurance (Group) has sold HK$392 million (US$50 million) worth of its shares in London-based HSBC in an apparent tantrum days after reports that the bank’s largest shareholder voted against the reappointment of the lender’s departing CEO Noel Quinn as a director.
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Ping An sold 5,648,800 shares of HSBC, the largest of Hong Kong’s three currency-issuing banks, at an average price of HK$69.3074 on May 7, lowering its stake in the lender to 7.98 per cent from 8.01 per cent, according to a filing with the Hong Kong stock exchange on Friday.
Ping An, HSBC’s largest shareholder, lodged a protest vote against Quinn’s leadership at a general shareholder meeting on May 3, Bloomberg reported on Sunday.
Quinn was reelected as a director with 83.93 per cent of the vote, according to the company’s meeting statement. HSBC reported that 16.07 per cent of the votes cast by investors were against Quinn’s re-election. That was roughly equivalent to Ping An’s holding in the bank, taking into account a turnout of 52.3 per cent of the total issued share capital.
Ping An did not immediately respond to a request for comment.
Quinn will remain CEO of the London-headquartered bank until his successor starts in the role, and has agreed to remain available through to the end of his 12-month notice period expiring on April 30, 2025.
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