December 6, 2017 / 2:23 PM / a year ago

China's Ping An takes 5 percent stake in HSBC via Stock Connect

FILE PHOTO - A woman rides a bicycle carrying her child past a car bearing the company logo of Ping An Insurance, in Hefei, Anhui province January 11, 2013. REUTERS/Stringer/File Photo

LONDON (Reuters) - Ping An Insurance (Group) Company of China has built up a 5 percent stake in HSBC (HSBA.L), it said in a regulatory filing on Wednesday, making it a ‘significant investor’ in Europe’s biggest bank.

Ping An said the investment is a financial one based on the bank’s strong performance and track record of paying dividends.

The investment represents a reversal in the historical relationship between the two financial firms. HSBC in 2012 sold its $9.38 billion stake in Ping An to a conglomerate controlled by Thailand’s then-richest man Dhanin Chearavanont.

Ping An said it build up its 5 percent stake in HSBC by buying its Hong Kong-listed shares via the Stock Connect program which allows mainland Chinese companies to buy Hong Kong shares, and vice versa.

Reporting by Lawrence White; editing by Jason Neely

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