China's insurance company Ping An has become HSBC's largest shareholder in the British banking group, with its $ 12 billion share, indicating that China's growing foreign investment diet according to Agerpres, according to Dow Jones News.
Ping An Insurance's share of HSBC rose to over 7 percent after a small purchase last week, according to a report Monday. In December, China's insurance company Ping An announced that it would invest about 5% in the British banking group.
Ping An's financial management is worth $ 93.72 billion in Hong Kong ($ 11.97 billion), based on HSBC's stock price on Tuesday in the Hong Kong Stock Exchange.
Ping An was therefore overrun by BlackRock, the world's largest asset manager, accounting for about 6.6 percent of HSBC. BlackRock representatives did not comment on the information.
Investment is an image for a Chinese company. In the past, HSBC owned most of Ping Ani, but in 2012 it sold its 15.6 percent stake in a $ 9.39 billion Thai-billionaire Dhan's Chearavanont group.
HSBC, which is the sixth largest bank in the world according to its stock market, pays large annual dividends, equivalent to approximately 6% of the share price. For this reason, HSBC's securities in London and Hong Kong are attractive to global investors who are vulnerable to turmoil. Long-term presence in China is also a familiar name for many Chinese investors.
HSBC has announced that it welcomes Ping An's decision to be a long-term investor, two companies with strong co-operation over time.
The Financial Times (FT) recently announced that HSBC could become the first foreign company to be listed in China in the midst of new bonds between the London Stock Exchange (LSE) and Shanghai.
"It's a business that has been working for over a decade, and London-Shanghai communications plans would make HSBC's first bank to offer Chinese certificates – securities traded that reflect the basics of listed shares anywhere." FT.
A new link between London and Shanghai stock markets could allow international investors to access Chinese companies and Chinese investors could buy LSE shares.
"The plan to offer HSBC shares to the Shanghai Stock Exchange is seen as a symbolic list after years of planning," the Financial Times reported sources of anonymity.
HSBC's spokesman told CNBC, referring to FT's article: "We will review the proposed framework for China's depository certificates on the London-Shanghai equity market link, but we can not comment further at this time."
Currently HSBC shares are listed in Hong Kong and London.