HSBC investor Ping An says bank’s management has failed to address ‘key business model challenges’

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HSBC investor Ping An says bank’s management has failed to address ‘key business model challenges’
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HSBC should separate its Asia business into a Hong Kong-listed entity, Ping An said, in an update to proposals it began urging last November

The renewed salvo from Ping An comes as shareholder advisory group Glass Lewis urged investors to vote against proposals calling for a strategic review and dividend policy revamp, deepening divisions between factions of the bank’s ownership ahead of its annual meeting on May 5.

Glass Lewis said the strategic review proposal, filed by individual shareholder Ken Lui in Hong Kong and backed by Ping An, was “not in shareholders’ interest.” “In our view, the board’s strategy and plans appear valid and are likely to result in greater returns and value, on a risk and cost-adjusted basis, than the overly prescriptive and, in our opinion, unnecessary proposals submitted by the proponent,” Glass Lewis said in a note to clients seen by Reuters on Tuesday.

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