SINGAPOREHONG KONG, May 3 Reuters Shares in HSBC Holdings gained on Tuesday after its largest shareholder, Chinese insurance giant Ping An, urged a breakup of the Londonheadquartered bank in a bid to improve returns.

Sources familiar with the situation said on Friday that Ping An had called on HSBC to look at options including spinning off the Asian business, where it earns twothirds of its pretax profits, or taking other steps to boost its valuation. 

HSBC shares added 1.85 in Hong Kong trade, helping lift the broader market, which edged up 0.1 to pare earlier market declines. The Hong Kong and London bourses were closed on Monday for a holiday.

That Asia makes up the majority of HSBC39;s revenues suggests that a spinoff may be logical, but it needs to be balanced by the fact that a significant portion of that is the result of HSBC39;s global footprint bridging East and West, said Justin Tang, head of Asian research at investment advisory firm United First Partners.

HSBC, Europe39;s largest bank, has not commented on Ping An39;s involvement but defended its overall strategy in a statement, saying that it believed it had the right strategy and was focused on executing it. L2N2WR21M

Chief Executive Noel Quinn, who has run the bank for the past two years, is ploughing billions into Asia to drive growth, with a focus on wealth management, and has also moved global executives there.

Ping An, China39;s largest insurer, said on Saturday that it supports all reform…