European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
UK PM Burnham to Unveil Economic Vision at Labour Conference 
SMBC Eyes 20% VPBank Stake in Vietnam Expansion 
China Consumer Stocks Near Decade Lows as AI Shares Surge 
US Appeals Court Upholds Anthropic AI Supply Chain Ban 
Jeff Bezos Invests $32 Billion in Blue Origin as Space Firm Targets Major Growth 
Erste Group Plans Tender Offer to Boost Poland Bank Stake 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Japanese Yen Rebounds as Trump Flags Currency Weakness 
Oil Prices Fall on U.S.-Iran Hormuz Deal Hopes 
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending 
DaVoice Sues Perplexity AI Over Trade Secrets 
SpaceXAI to Double Nvidia Chips at Colossus 2 by Year-End 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Costco Revenue Beats Estimates as Inflation Drives Bulk Shopping 
Add as a preferred source on Google
Citigroup Inc. has officially confirmed the sale of its China consumer wealth portfolio to HSBC Holdings Plc. This deal includes the transfer of clients, assets under management (AUM), and deposits.
"Today's announcement progresses the wind-down of Citi's consumer banking business in China, which was announced in December 2022," Reuters quoted a statement by the U.S.-headquartered bank.
The total value of deposits and investment AUMs covered by the agreement is estimated at around $3.6 billion. According to Forbes, the transaction is expected to be finalized in the first half of 2024, pending regulatory approval and completion of necessary formalities.
Citi's China Consumer Banking Exit and HSBC's Expansion Plan
Citi's consumer banking business focused primarily on serving affluent clients through deposit, fund, and structured product offerings. However, its consumer banking business in China pales compared to local Chinese banks and foreign competitors like Standard Chartered, which boasts a larger network of retail branches dedicated to wealth management. This move by Citi aligns with its mission to concentrate on more profitable markets and reduce its presence in less lucrative regions.
As Europe's largest lender, HSBC views China as one of its key markets, driving its strategy to exit less profitable geographies. With the regulatory approvals obtained in recent years, HSBC can now offer comprehensive wealth management and mobile fund and insurance solutions in mainland China.
Furthermore, HSBC's strategic investment in Shanghai MediTrust Health Technology Co. Ltd., announced earlier this year, further demonstrates its commitment to strengthening ties within the Chinese market.
Citi Emphasizes Continued Commitment to Chinese Clients
The agreement between Citi and HSBC specifically pertains to the wealth portfolio and does not include Citi's institutional businesses. To serve the needs of their affluent to ultra-high-net-worth Chinese clients, Citi will continue operating through its regional wealth hubs in Singapore and Hong Kong. This ensures their valuable clients still benefit from the bank's expertise and services.
With this latest sale, Citigroup has made significant progress in its plan to exit consumer banking across multiple global markets. Citi plans to complete the sale of its Indonesia consumer business later this year. The bank has also initiated winding down its consumer business in Korea and reducing its overall presence in Russia.
Photo: Rubaitul Azad/Unsplash
