HSBC Expands in Asia with Acquisition of Citi\\\\\\\\\\\'s China Wealth Portfolio

HSBC, a global banking giant, is set to expand its presence in Asia through the acquisition of Citi's China Wealth Portfolio. This strategic move marks a significant step towards Citi's plan to wind down its consumer banking business in China. Read more about this major development.

Citi, a multinational financial institution, has recently announced its agreement to sell its onshore consumer wealth portfolio in China to HSBC Bank China. This includes transferring clients, assets under management, and deposits to the British bank. The deal, expected to be finalized in the first half of 2024, encompasses a total of approximately $3.6 billion in deposits and investment assets. While the financial terms of the transaction remain undisclosed, this move is a significant step towards Citi's plan to wind down its China consumer banking business, which was initially announced in December.

HSBC Expands in Asia with Acquisition of Citi's China Wealth Portfolio | ogusyis

As part of its global strategy shift, Citi decided to exit the China consumer banking sector in April 2021. Rumors of the impending transfer from Citi to HSBC had been circulating for some time before the official announcement. With this deal, it is estimated that up to 400 employees of Citi could transition to HSBC. According to a statement released on Monday, HSBC intends to extend employment offers to Citi staff currently supporting the acquired wealth operations.

Despite the withdrawal from consumer banking, Citi plans to continue lending to institutions in China. Additionally, the bank will maintain its focus on serving ultra-high net worth Chinese clients through its international personal bank and private bank, which are based in regional wealth hubs in Hong Kong and Singapore.

In conclusion, Citi's decision to sell its onshore consumer wealth portfolio in China to HSBC Bank China marks a significant milestone in its strategy to exit the China consumer banking business. As part of this deal, approximately $3.6 billion in deposits and investments will be transferred. Rumors about this transfer had already surfaced earlier, and it is expected that up to 400 Citi employees will move to HSBC as a result. Despite this shift in focus, Citi will continue its lending activities in China, while catering to ultra-high net worth Chinese clients through its international personal bank and private bank located in Hong Kong and Singapore.