HSBC's partner plans £1.1bn HK listing

HSBC'S mainland China partner, Ping An Insurance - the country's second-largest insurer - plans to raise up to HK$16.49bn (£1.15bn) in the largest initial public offering in Hong Kong this year.

The move comes as flotation fever grips the region again with Ping An the third of China's top insurers to tap the market. HSBC, headed by Sir John Bond, bought a 10% stake in Ping An in 2002 for £326m.

Investment bank Morgan Stanley holds a 5.9% stake and Goldman Sachs owns 6.9%. Insiders says Shenzhen-based Ping An is selling 1.4bn shares at between HK$9.59 and HK$11.88.

At the upper end of the range, that would value Ping An at about £5bn. The listing was set to be launched with a roadshow in Hong Kong today. The issue is being led by Goldman Sachs with HSBC, Morgan Stanley and BOC International.

Ping An has a 17.3% share of China's insurance market but that is dwarfed by China Life's 41.8%. Most of Ping An's revenue comes from its life division.

Trading in the shares is expected to start in Hong Kong on 24 June. While there is expected to be enthusiasm there and beyond for the float, it comes at a difficult time when many investors are nervous about Beijing's plans to cool the country's raging economy.

'If China raises interest rates, that could slow growth,' a Hong Kong-based analyst said. 'But Ping An is well-respected and you've got to say its growth prospects look good with or without higher rates.'

Foreign lenders have a huge appetite for exposure to the £700bn Chinese savings pool.