HSBC pivots away from Asia at just the wrong time

HSBC Holdings Plc made a clear and compelling case for hanging on to its Asian business when its biggest shareholder Ping An Insurance Group started calling for a breakup of the London- and Hong Kong-listed bank last year.

But ahead of a likely fractious shareholder meeting tomorrow, the lender has muddied the waters.Ping An wants the bank to spin off or partially list its Asian business in Hong Kong to win the higher valuation it reckons local investors would award a regional business. HSBC has argued a split would increase costs and cause a loss of revenue from global corporate and wealth customers. The bank also said it was already shifting its balance sheet-focus towards Asia.Things could come to a head at HSBC’s annual investor gathering in London when shareholders vote on whether the bank should commit to structural reforms, after a resolution was added to the agenda by an activist investor who claims support from Ping An.