HSBC Holdings PLC (LSE:HSBA) shares were among the top risers in London on Tuesday after its largest shareholder called for the global lender to be broken up.
Chinese insurance giant Ping An, which owns an 8.23% stake, has suggested to the FTSE 100 bank that it examine potential means of boosting returns and its valuation, including a demerger of its business in Asia.
Ping An made its suggestion on Friday, according to a Reuters report, and on Saturday publicly said it supports all reform proposals that could help with HSBC's long-term value growth.
HSBC boss Noel Quinn last year confirmed its future focus will be pointed even more towards Asia and that it will exit the US retail banking market as part of a strategy pivot towards international banking and wealth management.
More recently it increased its stake in its China securities brokerage HSBC Qianhai Securities to 90% as its shift eastwards continues.
Shares in the bank were up 1.8% to 510.2p in early trading on Tuesday, but are still below their level from the start of 2020 and down by a third since the start of 2018.
“Given that two-thirds of its profits are earned in Asia and HSBC’s CEO has been looking to focus the bank on wealth management in Asia over the last two years, calls for a spin-off could be in alignment with the C-suite’s own ambitions for the lender," said market analyst Victoria Scholar at Interactive Investor.