HSBC is reportedly set to acquire Citigroup’s China consumer wealth management business, which manages over $3 billion in assets. This move will greatly enhance HSBC’s presence in China and is seen as part of its strategy to focus on its key revenue generator, Asia. The financial details of the transaction were not immediately known, but the deal is expected to be announced next month. As part of the acquisition, HSBC will also take over a few hundred of Citi’s China-based staff.
This acquisition adds to a series of moves made by HSBC to expand in China, as it aims to exit less profitable geographies and concentrate on its key markets. Citi has been looking to sell some of its portfolios and wind down its China retail banking business since 2021, as it withdraws from consumer franchises in multiple markets. While Citi’s China wealth management operations will be acquired by HSBC, its private banking services for high net worth Chinese clients from locations outside of China will remain intact. Citi is also in the process of establishing a China securities brokerage unit.
Overall, this acquisition is expected to strengthen HSBC’s position in China’s wealth management sector and further solidify its presence in the country’s financial market.