HSBC has signed an agreement to acquire Citi's consumer wealth business in mainland China, as part of the US lender's broader strategic plans to exit markets globally where it lacks scale.

Citi has agreed to sell its onshore consumer wealth portfolio in China to HSBC Bank China, according to a statement. The deal includes deposits and investment assets under management of approximately $3.6 billion as well as wealth clients across 11 major cities. 

The terms of the transaction were not disclosed and the deal is expected to be completed in the first half of 2024. The portfolio excludes credit cards, mortgages and other loans from Citi's China unit.

Market History

Citi first opened its office in China in 1902 before being one of the first global banks to locally incorporate in 2007. Moving forward, the US lender will retain its institutional business in the country. Affluent and ultra-high net worth clients from China will continue to be served from the bank’s wealth hubs in Singapore and Hong Kong.

«Citi is proud to have a long history in China,» said Christine Lam, China country officer and president of Citibank (China) Co. «We are deeply rooted in this market. We look forward to continuing to support our institutional clients in China as their preeminent partner for cross-border needs.»

The exit is part of Citi’s broader strategy announced in 2021 to exit 14 markets globally where it lacks scale. The bank has now closed sales in eight markets including Australia, Bahrain, India, Malaysia, the Philippines, Taiwan, Thailand and Vietnam.

HSBC’s Plans

Upon completion of the acquisition, HSBC will integrate the new business into its China wealth and personal banking operations. The British lender also plans to «extend offers to in-scope employees supporting Citi's local consumer wealth business in China».

«Our agreement to acquire Citi’s wealth management portfolio in China is a testament to our confidence in the country's long-term economic development. We're making investments across all areas of our business in this market,» said HSBC APAC co-CEO David Liao.

In recent years, HSBC has been ramping up its presence in mainland China. It acquired the remaining 50 percent stake in HSBC Life to become a wholly-owned insurer in 2020, launched global private banking services across six cities in 2022 and is in the midst of forming a 1,400-strong team of mobile wealth planners.