HSBC Holdings Plc (LON:HSBA) is set to strengthen its presence in Asia by acquiring Citigroup Inc (NYSE:C)'s retail wealth management portfolio in China, a deal expected to be finalized in the first half of 2024. The news came to light today, Monday.
The portfolio being acquired by HSBC includes around $3.6 billion in assets and deposits from affluent clients across 11 significant Chinese cities. The exact terms of the agreement have not been disclosed.
This move comes as Citigroup makes a strategic shift away from consumer banking in Asia, focusing more on wealth management and corporate customers. As part of this strategy, Citigroup is selling its $3.6 billion onshore consumer wealth portfolio in China to HSBC Bank China. However, this deal does not include Citigroup's institutional businesses in the country.
Christine Lam, Citi China Country Officer, confirmed the benefits of the transaction for all parties involved today. This sale follows Citigroup's previous divestment of its consumer-banking franchises in Southeast Asia to United Overseas Bank (OTC:UOVEY).
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