Citigroup Agrees to Sell China Consumer Wealth Portfolio to HSBC

Citigroup Inc has announced its agreement to sell its China consumer wealth portfolio, including clients, assets under management (AUM), and deposits, to HSBC Holdings Plc. The deal, which is expected to close in the first half of 2024, encompasses total deposits and investment AUMs worth approximately $3.6 billion. Financial details of the transaction were not disclosed.

This move marks another step in Citigroup’s wind-down of its consumer banking business in China, following the bank’s initial announcement in December 2022. The decision to exit China’s consumer banking sector was part of Citigroup’s broader global strategy revamp, which was unveiled in April 2021.

The acquisition of Citi’s China consumer wealth business by HSBC is seen as a significant boost to the London-based bank’s operations in the world’s second-largest economy. Reuters had previously reported on this development, highlighting the potential deal between the two financial institutions.

As Citigroup continues to streamline its operations, this transaction allows HSBC to expand its presence in China’s wealth management market. Both banks are committed to serving their clients and ensuring a smooth transition during the process.

The sale of Citigroup’s China consumer wealth portfolio to HSBC demonstrates the ongoing evolution and strategic realignment within the global banking industry. It also reflects the increasing focus on wealth management opportunities in China, a market with immense growth potential.