HSBC in China

HSBC pockets $2.6 billion from Ping An sale

The bank will sell its entire 15.6% stake in Ping An to the Thai Charoen Pokphand Group for $9.4 billion, pocketing a profit of $2.6 billion.
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CP Group is best known in China for its agricultural produce
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<div style="text-align: left;"> CP Group is best known in China for its agricultural produce </div>

The guessing game on potential buyers of HSBCs Ping An stake ended yesterday when the bank said it will sell its entire holding in China’s leading insurer to a Thai conglomerate, in a deal that would allow the bank to pocket a $2.6 billion profit and slightly boost its core capital ratio.

The British bank has agreed to sell its 15.6% stake in Ping An to the Charoen Pokphand Group, an unlisted conglomerate controlled by Thai billionaire Dhanin Chearavanont, for HK$72.7 billion $9.4 billion, or HK$59 per share. The deal will be partly financed by China Development Bank CDB, a wholly state-owned policy lender.

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