US-based Citigroup is doubling down on Hong Kong as a wealth management hub, expressing optimism about the Greater Bay Area outlook.
Citi will look to grow its wealth management business in the Greater Bay Area – an 11-city cluster in China – as well as the rest of Asia via Hong Kong.
«Our commitment to Hong Kong and to China could not be stronger. We are extremely focused on this region as a source of growth for Citi’s wealth management in the years ahead,» said global wealth head Andy Sieg in an «SCMP» report.
Growth Areas
According to Sieg, the US bank is looking to expand its credit card, retail banking, private banking and family office businesses in the coming years. On family offices, he said there was demand in Hong Kong from both international and mainland investors.
«Hong Kong offers a great base for family offices because it has a combination of deep history as a financial center and proximity to what is taking place in mainland China,» he noted.
China Sale
Despite its ambitions, Citi has been offloading various onshore businesses in the region, including in China. In October 2023, the bank sold its mainland China wealth business to HSBC in a move that Sieg said was in line with the bank’s broader strategy.
«The onshore consumer business in mainland China was sold because, similar to other markets where we divested such businesses, it just did not have the necessary scale to compete,» he explained. «Having Hong Kong as our base to serve our clients in mainland China is our strategy.»
Singapore Hub
Alongside Singapore, Citi aims to attract $150 billion in new client assets by 2025 in Asia. It opened its first wealth center globally in Hong Kong in November 2022 and added two wealth centers in Singapore in December 2023 and February this year.
«We see Hong Kong and Singapore as key centers for the future of wealth in Asia,» Sieg said. «They will both be successful markets as the two cities act as a bridge between China and the broader markets of Southeast Asia and the world.»
