On Monday, Citigroup Inc. declared an agreement to offload its China consumer wealth portfolio, which incorporates clients, assets under management (AUM), and deposits, to HSBC Holdings Plc. This decision is in line with Citigroup’s strategy to phase out its consumer banking operations in China.. The transaction involves the transfer of total deposits and investment AUMs worth approximately $3.6 billion and is set to be finalized in the first half of 2024. The exact financial terms of the agreement remain undisclosed.
The decision to divest the China consumer banking business was initially disclosed by Citigroup in April 2021, as part of a broader global strategy revamp. The business primarily catered to affluent clients, offering deposit, fund, and structured product services.
According to reports last month HSBC was set to acquire Citi’s China consumer wealth business, providing a substantial boost to HSBC’s presence in the world’s second-largest economy.
The purchase will exclude Citigroup’s institutional operations, and the bank made it clear that it will persist in meeting the requirements of wealthy to ultra-high net worth Chinese clients via its regional wealth centers in Singapore and Hong Kong.Citigroup said it is focusing on making money in important places, especially in Asia. They just finished selling stuff in eight different markets, and they’re planning to sell their business in Indonesia later this year. They are also slowly stopping their business for regular people in Korea and Russia. Citigroup is thinking about doing a special kind of sale, called an IPO, for their business that deals with regular people, small businesses, and medium-sized businesses in Mexico.
