HSBC has reached an agreement to sell its stake in Ping An Insurance, it has emerged this morning (5 December).
Thai organization Charoen Pokphand has finalized a cash deal worth around $9.3 billion to purchase the major UK bank's shares in the Chinese company, with the first stage of the contract to be completed on Friday when 20.8 per cent of the shares will be transferred.
The remaining 79.2 per cent of the shares will then be passed on to Charoen Pokphand after the China Insurance Regulatory Commission provides its approval.
Last month, HSBC revealed it was in discussions with a number of interested parties over the sale of its holding in Ping An - which was initially acquired ten years ago - as it continues its restructuring process in the wake of the global financial slump.
Stuart Gulliver, HSBC chief executive, said this deal shows "further progress" in the bank's new strategy and added that "China remains a key market" for the business.
By Asim Shah