Shares of HSBC were down 0.89% on Monday.
It comes after investor advisory group ISS advised HSBC shareholders not to vote for proposals calling for the spinoff of HSBC’s Asian business at the upcoming AGM on May 5, Reuters reported.
In a note seen by the news agency, ISS said the Ping An proposal, which supported a resolution by individual shareholder Ken Lui calling for the spinoff, “lacks detailed rationale.”
Lui had put forward two resolutions calling for a review of HSBC’s business — including the spinoff and a restoration of fixed dividends, among others.
ISS is not the only one with this stance. Last week, another shareholder advisor Glass Lewis said the strategic review proposal was “not in shareholders’ interest.”
This article was originally published by CNBC.
