HSBC is set to sell its 15.6 per cent stake in Ping An, China’s biggest private insurer.
The Financial Times reports the UK-based bank will stand to make close to $3 billion by selling its shares to Charoen Pokphand Group of Thailand.
China's insurance regulator has given its blessing to the move and the group has already made a $1.9 billion paper profit on the deal as a result of Ping An’s shares being a fifth higher than the HK$59.00 ($7.61) that it agreed to pay.
It appeared the sell-off had fallen through after the China Development Bank seemed to have changed its mind about providing the finance it had promised to Charoen Pokphand Group.
Meanwhile, HSBC has appointed Simon Cooper as group managing director and chief executive of global commercial banking. He will start his term on 1 October 2013.
He succeeds Alan Keir who has been appointed UK chief executive and will also take on the role on 1 October.
By Claire Archer