Citigroup to Sell China Consumer Wealth Unit to HSBC
Citigroup Agrees to Sale
Citigroup (NYSE:) has announced its agreement to sell its retail wealth management portfolio in mainland China to HSBC (LON:). The transaction, expected to close in the first half of 2024, will cover total deposits and investment assets under management of around $3.6 billion across 11 large Chinese cities. Although the terms of the deal have not been disclosed, Citigroup will continue to serve affluent to ultra-high net worth Chinese individuals through its regional wealth hubs in Singapore and Hong Kong.
Citi’s Retail Divestment Plans
Citigroup had previously revealed its plans to divest its retail operations in various Asian countries. While its retail business in China will now be sold to HSBC, the U.S.-based bank is also aiming to offload its Indonesia consumer business later this year. Additionally, Citigroup is currently undergoing the wind-downs of a similar division in Korea and its overall presence in Russia. These strategic moves reflect Citigroup’s focus on refining its operations and optimizing its business portfolio.
HSBC’s Expansion in China
For Asia-focused HSBC, the acquisition of Citigroup’s retail wealth management portfolio in China represents an opportunity to expand its presence in the country. With China being the world’s second-largest economy, HSBC is strategically looking to tap into this market to drive revenues. However, following the announcement, London-listed shares in HSBC saw a decline.
Overall, this deal between Citigroup and HSBC marks a significant step for both financial institutions in their respective strategies for growth and optimization.
