Shares in HSBC sank more than two percent in Hong Kong on Friday after a report said major investor Ping An Insurance was looking to trim its stake in the banking giant.

The Chinese insurer is weighing options to cut its $13.3 billion holding in the London-headquartered lender, according to a Bloomberg News report citing people familiar with the matter.

HSBC fell 2.5 percent in early exchanges, after its London-listed stock suffered a sharp drop at the end of trading to finish 0.7 percent down, having been well in the green all day.

Ping An may opt for a share sale or let a sovereign wealth fund or ultra-rich Middle Eastern investor take a sizeable stake, Bloomberg reported.

The insurer said last week that it had sold HSBC shares worth US$50 million, lowering its stake in the banking giant from 8.01 to 7.98 percent.

The firm earlier this month lodged a protest vote against reappointing outgoing HSBC chief executive Noel Quinn as a director on the bank's board.

Quinn, who announced last month that he would retire from his role as CEO after a five-year tenure, had helped defeat a proposal by Ping An to spin off HSBC's Asia assets.