Citigroup to sell China consumer wealth business to HSBC

(Reuters) -Citigroup Inc said on Monday that it had agreed to sell its China consumer wealth portfolio, including clients, assets under management (AUM) and deposits, to Asia-focused HSBC Holdings Plc.

The deal covers total deposits and investment AUMs of about $3.6 billion, and is expected to close in the first half of 2024. Financial details of the transaction were not disclosed.

“Today’s announcement progresses the wind-down of Citi’s consumer banking business in China, which was announced in December 2022,” the U.S.-headquartered bank said in a statement.

Citi first announced its plan to exit China consumer banking in April 2021 as part of a global strategy revamp.

Reuters first reported late last month that HSBC was set to acquire Citi’s China consumer wealth business, in a major boost to the London-based bank’s business in the world’s second-largest economy.

(Reporting by Aishwarya Nair in Bengaluru; Writing by Sumeet Chatterjee; Editing by Dhanya Ann Thoppil and Jamie Freed)