According To Sources, HSBC Will Buy Citigroup China’s Consumer Wealth Business

HSBC

HSBC is poised to acquire Citigroup’s China-based consumer wealth management business, which oversees assets exceeding $3 billion, marking a significant development for the London-based bank’s operations in the country. The deal, although lacking immediate financial details, will also involve HSBC taking on “several hundred” of Citi’s personnel located in China, according to insiders familiar with the matter.

This transaction is expected to be officially announced next month, though the sources could not be named due to a lack of authorization to speak with the media. Both HSBC and Citigroup declined to provide comments.

HSBC’s move to acquire Citigroup’s China-based wealth management business is part of the bank’s broader strategy to expand its presence in China, which is a crucial market. The bank has been divesting from less profitable regions to concentrate on its primary revenue source, Asia.

Citigroup’s China wealth management division, previously part of its retail banking sector, has been under scrutiny since 2021 as the bank aimed to exit from this segment. It predominantly caters to mass affluent clients in the world’s second-largest economy.

HSBC’s focus on China aligns with its broader ambitions, as the bank aims to strengthen its position in this dynamic and growing market. This acquisition underscores HSBC’s commitment to tapping into China’s wealth management sector, which is witnessing increased demand for financial services from a rising middle-class and affluent population. By leveraging its global expertise and resources, HSBC seeks to further establish itself as a leading player in China’s financial landscape.