By The Financial District
Oct 10, 20231 min
HSBC Holdings Plc has agreed to purchase Citigroup Inc's retail wealth management portfolio in mainland China, further expanding its presence in the world's second-largest economy, Denise Wee reported for Bloomberg News.
The portfolio comprises approximately $3.6 billion in assets and deposits from wealth customers across 11 major cities, according to HSBC. I Photo: Can Pac Swire Flickr
The portfolio comprises approximately $3.6 billion in assets and deposits from wealth customers across 11 major cities, according to HSBC. Terms of the transaction were not disclosed, and the deal is expected to close in the first half of 2024, as stated by Citi.
While Citigroup is exiting its consumer wealth business in China, it will retain its institutional businesses and continue to serve the needs of ultra-high net worth clients in China through its regional wealth centers in Singapore and Hong Kong.
Zacks Equity Research also reported the same day that Citigroup has divested eight markets, namely Australia, Bahrain, India, Malaysia, the Philippines, Taiwan, Thailand, and Vietnam.
HSBC is aiming to become a leader in one of the world's fastest-growing wealth markets as part of its pivot to Asia strategy.
However, the deal comes at a time of growing concern over the direction of the Chinese economy, given a prolonged slump in the country's real estate market, which had been a major source of wealth growth, and a crackdown on private enterprise.
"Mainland China is central to our ambition to be the leading wealth manager in Asia," said Nuno Matos, Chief Executive Officer of Wealth and Personal Banking at HSBC.