Early in December, HBSC said it was selling its 15.6% stake in China’s Ping An Insurance.
And Thailand’s Charoen Pokphand Group had agreed to pay 59 Hong Kong dollars ($7.61) a share for the slice of the company.
The sale is part of a broader push by Europe’s biggest bank to improve its profitability, as lenders worldwide struggle with weak economic growth and stricter regulation following the global financial crisis.
The deal is now in jeopardy, however, since CP Group has lost the support of China Development Bank; the bank was planning to provide loans that would be used to partially fund the purchase before backing out.
Though CP Group has taken over 3.2%, the deal is now being eyed by regulators as a possible concern.
Read more on how a fallout would impact both parties.