HSBC’s key shareholder move to split Asia operations

As the British bank’s distribution across two hemispheres has grown precarious due to rising tensions between China and the West, one of its largest owners, Ping An Insurance, is attempting to split the financial giant’s operations into Western and Asian parts.

Recent research from In Toto Consultancy suggests that spinning off the bank’s Asian operations might benefit investors as well, freeing up $26.5 billion for current shareholders, or approximately one-fifth of the bank’s whole current market value.

“It is sensible to engage in a deeper conversation about whether a more radical restructuring is necessary for HSBC to not only survive but thrive over the longer run,” Asheefa Sarangi, managing director and founder of In Toto Consultancy, told Bloomberg Sunday.

The Chinese insurance colossus Ping An, which is pushing for HSBC to split, reportedly paid for In Toto’s research, according to the Sunday Times.