Li Ka-shing and His Son Sell 101 Million Shares of Postal Savings Bank of China, Sparking Debate

The Li Ka Shing Foundation recently unexpectedly reduced its holdings of shares in Postal Savings Bank of China, cashing out HK$122 million. The photo shows Li Ka-shing on May 10, 2018, his last day at work before retirement. (Song Biyong/Dajiyuan)

October 20, 2024 – Li Ka-shing and his son Victor Li have recently sold H shares of Postal Savings Bank of China (PSBC) twice, totaling approximately 101 million shares. Following the reduction, their stake has decreased from 9.03% to 7.96%.

According to information disclosed by the Hong Kong Stock Exchange, Li Ka-shing and Victor Li reduced their holdings of PSBC H shares on October 14 and October 17, selling 78.517 million and 22.801 million shares respectively, for a combined total of approximately 101 million shares. After the reduction, the father and son held approximately 1.581 billion H shares, lowering their stake from 9.03% to 7.96%.

The Hong Kong Stock Exchange also revealed that the average price per share for the sales on October 14 and 17 was HK$4.6711 and HK$4.7375, respectively. According to Daily Economic News on October 19, the total value of the share sales amounted to approximately HK$475 million.

In 2016, when PSBC H shares were listed, Li Ka-shing and his son purchased 2.267 billion shares through their foundation.

The 2024 interim report of PSBC shows that as of the end of June, Li Ka-shing and Victor Li held approximately 1.971 billion shares through the Li Ka-shing Foundation and other entities. Before the reduction on October 14, this had decreased to 1.793 billion shares, indicating that they had already reduced their holdings by about 178 million shares during that period.

There had been earlier reductions in September 2022 and May 2023. In May 2023, the Li Ka-shing Foundation reduced its holdings by 22.493 million shares at an average price of HK$5.43 per share, totaling approximately HK$122 million.

Regarding the recent reduction, a spokesperson for CK Hutchison Holdings and CK Asset Holdings stated that Li Ka-shing has "absolute confidence" in PSBC and views the bank as a long-term investment. The foundation's reduction was described as a financial investment.

PSBC responded by saying that the Li Ka-shing Foundation has always maintained a good relationship with the bank and has no concerns about its operations or development.

Li Ka-shing and his son's sale of PSBC shares sparked widespread discussion online.

One netizen, "Qishi," commented: "This is a signal that bank stocks are going to fall."

Another user, "Agua," remarked: "This shows that banks have been driven up too high."

A third netizen, "Zhijiansha," said: "Smart move! I admire this decision. The price is currently high, so it makes sense to sell now and have flexibility for future buys or sells."

User "Lulalalalala" added: "The market doesn't look good for Monday."

Public information shows that the headquarters of Postal Savings Bank of China is located in Xicheng District, Beijing. It is a large state-owned commercial bank and one of China's six largest state-owned banks. The bank was restructured into a joint-stock company in January 2012 and was listed on the Hong Kong Stock Exchange in September 2016, followed by a listing on the Shanghai Stock Exchange in December 2019.

Editor: Liu Yi