HSBC is reportedly set to acquire Citigroup’s China consumer wealth management business in an effort to expand its presence in the country. The deal, which is expected to be announced next month, will see HSBC take over the management of more than $3 billion in assets. Additionally, the bank will also absorb a significant number of Citi’s China-based staff. This acquisition is part of HSBC’s broader strategy to focus on its key revenue generator, Asia, and exit less profitable markets.
The financial details of the transaction have not been disclosed yet. However, the move signifies HSBC’s commitment to expanding its foothold in China, one of its key markets. The acquisition of Citi’s China wealth management operations, which mainly serves mass affluent clients, will significantly boost HSBC’s business in the world’s second-largest economy. It also aligns with HSBC’s efforts to strengthen its presence in Asia and exit less profitable markets globally.
Citi’s decision to sell its China consumer banking business is part of its strategy to withdraw from consumer franchises in several markets around the world. The move comes as Citi focuses on high-net-worth clients through its private banking services and seeks to establish a China securities brokerage unit. Overall, this acquisition positions HSBC as a leading player in China’s consumer wealth management sector and reinforces its commitment to expanding its presence in Asia.