Chinese insurance company Ping An has become the biggest shareholder of the British banking group HSBC, a 12 billion-dollar stake that shows China's interest is increasing against foreign investment, according to Dow Jones News, according to Agerpres.
Ping An Insurance shares at HSBC rose to more than 7% after a small acquisition last week, according to a report released Monday. In December, Chinese insurance company Ping An announced that it was investing around 5% in the UK banking group.
The management share of Ping An assets is worth 93.72 billion Hong Kong dollars (11.97 billion US dollars), based on HSBC's share price at the close of the Hong Kong Stock Exchange on Tuesday.
Ping An then took over BlackRock, the world's largest asset manager, with a stake of around 6.6% in HSBC, according to the latest October news. The BlackRock representative did not comment on the information.
Investment is taking pictures for Chinese companies. In the past, HSBC had a major part of Ping An, but in 2012, it sold a 15.6% stake to a $ 9.39 billion Thai billionaire controlled by conglomerate Dhanin Chearavanont.
HSBC, the sixth largest bank in the world according to the stock market capitalization, pays a large annual dividend, equivalent to about 6% of its share price. For this reason, HSBC securities traded in London and Hong Kong are attractive to investors affected by global turmoil. With a long presence in China, this is also a name that is familiar to many Chinese investors.
HSBC has announced that it welcomes Ping An's decision to become a long-term investor, both companies have solid collaboration from time to time.
Recently, Financial Times (FT) announced that HSBC could become the first foreign company registered in China, amid new relations between the London stock market (LSE) and Shanghai.
"This is a step that has worked for more than a decade, plans for the London-Shanghai connection will make HSBC the first bank to offer Chinese certificates – tradable securities – that reflect the core value of listed shares anywhere." FT.
The new relationship between the stock markets in London and Shanghai can allow international investors to have access to shares of Chinese companies, and Chinese investors can buy shares listed on the LSE.
"Plans to offer HSBC shares on the Shanghai Stock Exchange are seen as symbolic lists after years of planning," the Financial Times quoted a source citing anonymity.
An HSBC spokesman told CNBC, referring to the FT article: "We are studying the proposed framework for registering Chinese deposit certificates based on the London-Shanghai stock market link, but we cannot comment further at this time".
At present, HSBC shares are registered in Hong Kong and London.