Submitted by Fox First at Ten on December 5th
HONG KONG (AP) - HBSC says it is selling its 15.6 percent stake in China's Ping An Insurance to a Thai conglomerate for about $9.4 billion.
HSBC said Wednesday in a statement to Hong Kong's stock exchange that Thailand's Charoen Pokphand Group will pay 59 Hong Kong dollars ($7.61) a share.
The sale is part of a broader push by Europe's biggest bank to improve its profitability as lenders worldwide struggle with weak economic growth and stricter regulation following the global financial crisis. Its three-year restructuring plan involves selling or closing weak businesses.
For Charoen Pokphand, the acquisition is a big expansion into financial services. Its businesses include agriculture, ready-to-heat meals, motorcycle manufacturing and property development.
Ping An is based in the southern Chinese boomtown of Shenzhen, which neighbors Hong Kong.
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