HONG KONG: HSBC Holdings Plc shareholders voted to reject proposals to shake up the bank that were put forward by a group of Hong Kong-based investors.
Indicative results from last Friday’s annual meeting showed that about a fifth of voting investors backed the call for HSBC to report regularly on the possibility of carving out its Asian unit, while 19.2% supported lifting its dividend to its pre-pandemic level.
With only around half of shareholders typically voting at such meetings, the results suggest that much of the support came from Ping An Insurance Group Co, which owns about 8% of the bank and has spent the past year battling with HSBC to enact a series of reforms, including spinning off its Asian arm.
HSBC’s board had recommended investors vote against the two resolutions tabled by Ken Lui, leader of the spin off HSBC Asia Concern Group. Independent shareholder advisory groups Institutional Shareholder Services and Glass, Lewis & Co also advised their clients not to back the motions.
The AGM marks the latest flashpoint between the two sides. Both HSBC chairman Mark Tucker and Noel Quinn reiterated their opposition to the Lui proposals in their opening statements at the meeting.
“Our analysis clearly demonstrated that such options would destroy value and put your dividends at risk,” Quinn said about strategic alternatives. “Our current strategy is the fastest and safest way to improve returns.” — Bloomberg
