HSBC overstated Asia spinoff risks, thinks top shareholder Ping An: Report

Ping An believes a spin-off would generate an additional $25 bn-$35 bn in market value and release over $8 bn in capital

Chinese insurer Ping An Insurance Group believes HSBC has overstated the challenges and difficulties of spinning off the bank, said a source with direct knowledge of the thinking of the bank's biggest shareholder.

The bank came under pressure from Ping An in April to explore options including spinning off its mainstay Asia business to increase shareholder returns.

Details of Ping An's internal discussions come after HSBC on August 1 pushed back on the Chinese investor's proposals while reporting its half-year earnings.

HSBC said a break-up would mean a potential long-term hit to the bank's credit rating, tax bill and operating costs, and bring