The lender’s shares were up 0.48% as of 11:36 a.m. in London, having gained as much as 3.5% in Hong Kong, the most in over a month. They rose 1.47% in London on Friday.
In 2020, HSBC shocked investors by announcing it would scrap its dividend, under pressure from the U.K. regulator, creating an uproar among retail investors in Hong Kong. The push is gathering support among some shareholders in Hong Kong.
“We are standing on the same side as Ping An,” said Simon Yuen, Hong Kong-based founder of Surich Asset Management, whose firm manages money for clients who hold HSBC shares. Yuen declined to disclose how many shares they hold, citing client confidentiality.
Yuen sees a divergence in monetary policy between China and other countries such as the US and said that HSBC would be better able to accommodate requests from different governments if its business is split.
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Headquarters Debate
The push may also rekindle a debate over HSBC’s headquarters. Hong Kong’s government, which had made no move to limit dividends of the banks it regulates, said it would welcome HSBC returning its headquarters to the city, according to a previous report in the South China Morning Post
HSBC is in the midst of a global reorganization intended to focus its resources on growing its core Asian markets, which are seen as providing the lender with the best growth opportunities. The bank is steering billions of dollars in capital toward Asia, while curbing or exiting unprofitable operations in Europe and the US.
HSBC reported first-quarter results last week and said more share buybacks were unlikely this year as a drop in a key measure of its capital strength took the shine off better-than-estimated earnings.
