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HSBC Will Acquire Citigroup China's Consumer Wealth Business - Reports

HSBC Will Acquire Citigroup China's Consumer Wealth Business - Reports
HSBC is planning to purchase Citigroup's China consumer wealth management company, which oversees more than $3 billion in assets, according to reports quoting sources with knowledge of the situation. This will significantly expand the London-based bank's operations in that nation.
One of the sources reportedly stated that "a few hundreds" of Citi's employees who work in China will be transferred to Asia-focused HSBC as part of the transaction, the financial terms of which were not immediately disclosed.
The two sources, who asked to remain anonymous because they were not licenced to speak to the media, claimed that the agreement might be revealed as early as next month.
There were no comments on the issue from HSBC.
The acquisition is the latest step taken by HSBC to expand in China, one of its core markets, as the largest banking in Europe vows to leave less lucrative countries in order to focus on Asia, its major source of revenue.
Citi's wealth management services in China, which are a part of the retail banking segment it has been intending to quit since 2021, primarily serve mass affluent consumers in the second-largest economy in the world.
The bank's private banking services, which cater to high net worth Chinese clients from locations outside of China, are still available, said the first source. Citi has just submitted a request to start a securities brokerage firm in China.
Citi revealed in December that it was trying to sell some of its portfolios as it shut down its China retail banking division as part of a strategy to exit consumer franchises in 14 locations throughout Asia, Europe, the Middle East, Africa, and Mexico.
Citi is currently winding down its South Korean business in Asia, and it plans to complete handing over its operations in Indonesia to UOB Group. In August, it completed the sale and relocation of its Taiwan consumer businesses.

Christopher J. Mitchell

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