LONDON (Reuters) - Ping An Insurance (Group) Company of China has built up a 5 percent stake in HSBC, it said in a regulatory filing on Wednesday, making it a ‘significant investor’ in Europe’s biggest bank.
Ping An said the investment is a financial one based on the bank’s strong performance and track record of paying dividends.
The investment represents a reversal in the historical relationship between the two financial firms. HSBC in 2012 sold its $9.38 billion (£7.1 billion) stake in Ping An to a conglomerate controlled by Thailand’s then-richest man Dhanin Chearavanont.
Ping An said it build up its 5 percent stake in HSBC by buying its Hong Kong-listed shares via the Stock Connect program which allows mainland Chinese companies to buy Hong Kong shares, and vice versa.
Reporting by Lawrence White; editing by Jason Neely