HSBC’s largest shareholder, Ping An, has called on the bank to be “much more aggressive” in reducing costs by cutting jobs and warned that its board lacks experience in Asia, as it pushes the lender to spin off its Asian business.
Michael Huang, chair of Ping An Asset Management, told the Financial Times it was “urgent” that HSBC goes further on cost cutting to bring down its expenses, which it said are far higher than its rivals, and said a number of senior bankers do not have sufficient experience of working in Asia.
Huang’s comments mark the first time the Chinese insurance company has spoken publicly about HSBC since it emerged earlier this year that it had privately urged the bank to hive off its Asian operations to boost returns. Ping An has a stake of more than 8 per cent in the bank.