China Regulator Seeking More Information on HSBC-Ping An Deal
China's insurance regulator said it is seeking more information from Ping An Insurance after conducting a preliminary review of HSBC's planned sale of its $9.4 billion stake in the insurer to Thailand's CP Group.
On Wednesday, the South China Morning Post and The Wall Street Journal reported that the China Insurance Regulatory Commission (CIRC) was likely to veto the deal due to a lack of funding.
"The CIRC has received from an application from Ping An Group regarding the stake transfer, conducted a preliminary review according to rules, and notified the company to provide additional materials," the CIRC said in an emailed statement to Reuters on Thursday, without specifying what additional information it was seeking.
The failure of the deal would be a blow to HSBC Holdings Plc and an embarrassment to the various parties involved in a corporate deal that was set to be Asia's second-largest in 2012.
Reuters on Tuesday said the deal was in jeopardy after state-backed China Development Bank (CDB) expressed concerns over its financing. According to the story, CDB's reluctance emerged after media reports said late in December that CP Group's payment for the deal came from outside sources.