Advertisement
Banking & finance
BusinessBanking & Finance

HSBC buys Citigroup’s US$3.6 billion China consumer wealth business

  • HSBC is acquiring Citigroup’s portfolio comprising US$3.6 billion in assets and deposits, with customers in 11 major mainland Chinese cities
  • Citigroup announced it would to exit its mainland China consumer banking business in April 2021

Reading Time:2 minutes
Why you can trust SCMP
2
HSBC is expanding its presence in China’s wealth management segment with the purchase of Citigroup’s retail banking business. Photo: Reuters
Mia Castagnone
HSBC Holdings is acquiring Citigroup’s retail wealth management business in mainland China, accelerating its push in the world’s second-largest economy.

The portfolio comprises US$3.6 billion in assets and deposits, with customers in 11 major cities, according to a statement from the London-headquartered bank on Monday. The deal excludes Citi’s credit cards, mortgage and other loan portfolios in mainland China.

The acquired business will be integrated with HSBC’s China’s wealth and personal banking operations, the bank said. The deal is expected to close in the first half of 2024.

“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,” said David Liao, HSBC Asia-Pacific co-CEO.

Citigroup is exiting China’s consumer wealth management business. Photo: Reuters
Citigroup is exiting China’s consumer wealth management business. Photo: Reuters

The bank has been making investments “across all areas” of its business in mainland China, with particular focus on fulfilling the “wealth needs” of Chinese consumers, he added.

Mainland China has the second-largest population of super rich after the US, with a cumulative wealth of US$5.3 trillion, according to Altrata. China’s ultra-high net worth population – individuals with a net worth of more than US$30 million – is expected to jump nearly 50 per cent by 2027, according to a separate survey by Knight Frank.
Advertisement