The London-headquartered bank, HSBC (HKG: 0005) is reported to have begun an internal review as part of an effort to rebut calls from its largest shareholder, Ping An to discuss splitting off its Asian operations.
Ping An Insurance was reported to push for a spin-off of HSBC Asian unit to improve returns.
Currently, the bank is examining the case for a break-up.
Executives of the bank are against the idea of splitting up HSBC. Hence, in an effort to push back against Ping An’s argument that the bank’s investors would do better from being able to choose to invest in a pure-play Asian business headquartered in Hong Kong, the executives have begun the analysis of a spin-off.
Sources closed to the bank said that bankers from Goldman Sachs have been drafted in to help with the review. Goldman Sachs has been helping prepare its defense against the breakup calls.
Meanwhile , the case-study work is in the early stages, but the targeted headline is to complete the report in the coming weeks and present it to the bank’s directors.