SHANGHAI (Reuters) - China's insurance regulator is seeking more information from Ping An Insurance after reviewing HSBC's planned sale of its $9.4 billion stake in China's No. 2 insurer to Thailand's CP Group.
The request comes amid concerns about the deal's funding triggered by the possible withdrawal of a crucial loan from China Development Bank (CDB).
Reuters reported on Tuesday that CDB is reconsidering its offer to finance a substantial portion of the deal, after the Chinese and Hong Kong media said funding from CP's first instalment came from people not affiliated with CP. The company has denied the reports.
“The CIRC has received 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.
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