Ping An opposed reappointing Quinn as a director

China's Ping An Insurance Group (2318) the biggest Asian investor in HSBC (0005) did not support reappointing chief executive Noel Quinn as a director to the bank's board at its shareholder meeting, a source familiar with the matter told Reuters, as the investor voted against such a move.

Quinn, who has announced he will step down as chief executive once a successor is appointed, last year defeated Ping An's long campaign to get HSBC to spin off its Asia business. Europe's biggest bank had faced proposals submitted by Hong Kong-based individual investor Ken Lui and backed by its biggest Asian shareholder Ping An to consider a radical restructuring and to boost its dividends.

Quinn was re-elected with 83.93 percent votes in favor, and 16.07 percent of votes against, according to the company's annual general meeting statement.

"Noel and the board were entirely unaware of the voting intentions until after his retirement had been announced," a spokeswoman for HSBC said. "As you can see from the votes, our shareholders are overwhelmingly supportive of the group's resolutions."

Since its push for a series of reforms, including spinning off its Asian arm, was roundly defeated at last year's AGM, Ping An has not made any comments, seemingly wrapping up its campaign against the bank. However, its latest protest vote suggests the insurer is still unhappy about the bank's strategic direction.

HSBC chairman Mark Tucker referred to last year's battle with Ping An on Friday, mentioning "a small group of shareholders who proposed strategy and structural reviews" at the previous gathering.

"I am pleased to say that the overwhelming majority of shareholders agreed with us," said Tucker. "That agreement was expressed very clearly when you had the opportunity to vote. A year later, you can see the value of your support for the board's recommendations."

Quinn will remain chief executive until his successor starts in the role, and he has agreed to remain available until the end of his 12-month notice period expiring on April 30, 2025. He boosted the bank's returns by cutting underperforming businesses in the West, including retail banking businesses in the US and France, its entire Canadian subsidiary and units in smaller markets such as Argentina.