Citi sells onshore consumer wealth portfolio to HSBC Bank China

The transaction is estimated at $3.6b.

Citi has decided to sell its onshore consumer wealth portfolio in China, along with its clients, assets under management (AUM) and deposits to HSBC Bank China.

HSBC is targeting to offer to in-scope employees, elevating Citi’s local consumer wealth segment in China.

The transaction is estimated at $3.6b, which contains total deposits and investment AUMs. Details of the contract were not provided, however, it is expected to finish within the first half of 2024.

This deal is in line with Citi’s pulling out from China’s consumer banking business in China, which was announced back in December of last year.

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Moreso, the bank declared its exit last April 2021 as it plans to refresh the firm’s broader global strategy.

The bank’s announcement did not include Citi’s institutional businesses in the country.

The bank further noted that it will continue to service its ultra-high net worth Chinese individuals through its regional wealth arms in Singapore and Hong Kong, promoting its Personal Bank and Citi Private Bank businesses.

It plans to finish the sale of its Indonesia consumer business toward the end of 2023.