HSBC denies Beijing is behind push to break up British lender

HSBC’S boss has denied that a campaign by a Chinese insurer to break up the British lender is directed by Beijing.

Noel Quinn, chief executive of the FTSE 100 bank, said Ping An’s bid to urge HSBC to spin off its Asian business into a separate entity was not “politically motivated”.

Mr Quinn told an event hosted by the Financial Times: “I do not believe it is politically motivated based on all the dialogue we’ve had with various stakeholders. Quite the contrary.

“We’re viewed in Asia, in Hong Kong, in China as an important international bank that has been there for 157 years, helping Hong Kong develop as an economy, helping China develop.

“Based on the conversations we’ve had, that is a position that is still valued and people want us to take.”

There has been speculation that Ping An is being pushed by the government, which is trying to increase its control over Hong Kong’s financial system.

Mr Quinn’s comments come amid a battle with Ping An, the bank’s largest shareholder, which is demanding that HSBC split its booming Asian business off from its stagnant western operations. It has also argued the lender can no longer effectively operate in both the East and West as political tensions between US and China rise.

The London-headquartered bank has been accused by British MPS of “aiding and abetting” Beijing’s authoritarian crackdown in Hong Kong, after voicing support for controversial security laws.

The bank has said that its current – and best – business strategy is to pitch itself as a conduit for trade between China and the West, through operations in Hong Kong. HSBC posts 90pc of its profits in east Asia, much of it through Hong Kong and mainland China.

Once styled as the “world’s international bank”, HSBC has also been accelerating disposals as it struggles to navigate political pressure over Beijing’s brutal crackdown in Hong Kong.

Earlier this week, HSBC sold its Canadian business for $10bn (£8.4bn) to Royal Bank of Canada as it scales back its global footprint and focuses on the Chinese market. Mr Quinn said that Ping An’s campaign has failed to win support with HSBC’S other large international investors and customers.

‘I do not believe it is politically motivated based on the dialogue we’ve had with various stakeholders’