June 24, 2024

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Exclusive: HSBC acquires Citigroup’s consumer wealth business in China

Exclusive: HSBC acquires Citigroup’s consumer wealth business in China

HONG KONG, Sept 28 (Reuters) – HSBC is preparing to acquire Citigroup’s consumer wealth management business in China, which manages more than $3 billion in assets, in a major deal, two sources familiar with the matter said. Strengthening the business of the London-based bank in that country.

The deal, financial details of which were not immediately known, will also see Asia-focused bank HSBC acquire “a few hundred” Citi staff in China, one of the sources said.

The two sources, whose identities were not revealed, said the deal could be announced as soon as next month.

HSBC and Citi declined to comment.

The acquisition adds to the list of moves made by HSBC to expand in China, one of its main markets, as the largest bank in Europe pledged to exit less profitable geographies to focus on its main revenue generator, Asia.

Citi’s wealth management operations in China, part of the retail banking business it has been looking to exit since 2021, mainly serve wealthy clients in the world’s second-largest economy.

Its private banking services, which cater to high-net-worth Chinese clients from the bank’s locations outside China, remain intact, the first source said. Citi is also applying to set up a securities brokerage unit in China.

City he said in December It was looking to sell some of its investment portfolios as it winds down its retail banking business in China, as part of a strategy to withdraw from consumer franchises in 14 markets in Asia, Europe, the Middle East, Africa and Mexico.

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In Asia, Citigroup is closing its operations in South Korea and plans to complete the transfer of its Indonesian business to UOB Group. In August, it completed the sale and migration of its consumer business in Taiwan.

Selena Lee reports. Editing by Sumeet Chatterjee, Tom Hogue and Sonali Paul

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