HSBC is in negotiations to sell its 15.6% stake in China’s second-largest insurer Ping An for about $US9.6 billion ($9.23 billion) – with Thai group Charoen Pokphand reportedly interested in buying.

No reason has been given for the sale but HSBC has been restructuring its Asian insurance exposures for some time.

In recent months the bank has sold its non-life businesses in Singapore and Hong Kong to French insurer Axa and its Taiwanese life assets to Allianz.

Earlier this month HSBC formed a property/casualty bancassurance partnership with Axa in Singapore and Hong Kong and agreed to distribute Axa’s non-life products in China, India and Indonesia for 10 years.

Analysts say the latest sale may affect the bank’s long-term profitability, because Ping An earns returns on equity of 15%, while HSBC earns 10%.

However, the latest Basel financial regulations make it less attractive for lenders to own insurers, because they are barred from pooling capital between the two businesses.

Ping An is the world’s third-largest insurer, with only China Life and Allianz larger.