HSBC to Acquire Citigroup’s China Consumer Wealth Management Business in Boost to Asian Market
HONG KONG, Sept 28 (Reuters) – HSBC is set to acquire Citigroup’s China consumer wealth management business, which manages more than $3 billion in assets, according to sources familiar with the matter. This move is expected to significantly strengthen HSBC’s presence in the Chinese market.
The financial details of the transaction have not been disclosed at this time. However, the deal will also involve HSBC taking over “a few hundreds” of Citi’s China-based staff, providing continuity for the existing workforce.
The announcement of the acquisition is anticipated to be made as early as next month, although the sources cannot be named as they are not authorized to speak to the media. Both HSBC and Citi have declined to comment on the matter.
This acquisition is part of HSBC’s ongoing efforts to expand its operations in China, which is a key market for the bank. HSBC has been strategically exiting less profitable regions to focus on its revenue generator, Asia.
Citigroup’s China wealth management operations primarily serve mass affluent clients in the country. The retail banking business, including the wealth management arm, has been on Citigroup’s radar for divestment since 2021. However, the bank’s private banking services, catering to high net worth Chinese clients, will remain intact.
In addition, Citigroup is currently in the process of applying to establish a China securities brokerage unit, indicating its commitment to the Chinese market in other areas.
Citigroup had previously announced its plans to sell some of its portfolios as part of its strategy to wind down its retail banking business in China. This is in line with its larger move to withdraw from consumer franchises in 14 markets across Asia, Europe, the Middle East, Africa, and Mexico.
Citigroup has also been streamlining its operations in South Korea, completing the sale and migration of its Taiwan consumer businesses, and transferring its Indonesian business to UOB Group.
The acquisition of Citigroup’s China consumer wealth management business will further solidify HSBC’s position in the Chinese market and contribute to its growth strategy in Asia.
Reporting by Selena Li; Editing by Sumeet Chatterjee, Tom Hogue, and Sonali Paul
Our Standards: The Thomson Reuters Trust Principles.