HSBC (NYSE:HBC) is reportedly in talks to sell its $9.3 billion stake in China’s Ping An Insurance in a move that would help the company further shed non-core assets in an ongoing effort to improve profitability in the years following the Great Recession.
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The bank acknowledged the speculation surrounding the stake sale and admitted on Monday that it “from time to time received approaches regarding its shareholding” in China’s No. 2 insurance company.
The British financial giant grew its stake in Ping An to 15.6% from 2002 to 2005 for a total purchase price of $1.7 billion.
The sales talks aren’t surprising as HSBC has sold more than 40 non-core assets worth about $4 billion since CEO Stuart Gulliver took the reins in 2011, according to a report by the New York Times.
Shares of HSBC climbed nearly 3% on the New York Stock Exchange Monday afternoon to $49.15.