A call for HSBC Holdings PLC (LSE:HSBA) to spin off its Asian business will not be supported by Norway’s sovereign wealth fund, which is the fourth-largest investor in the FTSE 100-listed bank.
Norges Bank Investment Management, which owns roughly a 3% stake in the lender, provided details on its intended vote ahead of the annual shareholder meeting on Friday.
The proposal to spin off the Asia business was put forward by a private shareholder and is backed by HSBC’s largest shareholder Ping An, which has an 8% stake in the bank.
The Chinese insurer, which long called for HSBC to hive off of its Asian business, said it intends to support this and other resolutions calling for better yields on their shareholdings.
HSBC said the proposals would cause too much uncertainty and distract it from its longer-term ambitions.
Norges Bank is not alone among large shareholders and proxy advisers in siding with the London-listed lender.