Citi is transferring ownership of its China wealth management division to HSBC.
In a significant move to bolster its wealth management business in Asia, HSBC has announced its acquisition of Citi's consumer wealth advisory portfolio in China. The deal, expected to close in the first half of 2024, covers total deposits and investment AUMs of approximately $3.6 billion.
HSBC's foray into China's wealth management sector has been marked by steady growth. The bank recorded an impressive $27 billion in net new invested asset inflows in Asia for the first half of 2023, representing a 21% increase year-over-year.
The acquisition will see up to 400 employees from Citi joining HSBC, with the bank planning to extend employment offers to the staff supporting the acquired wealth operations. HSBC's CEO, Noel Quinn, has stated that the bank is looking for "potential bolt-ons" to enhance its wealth business in Asia.
HSBC has already made significant strides in China's wealth management sector, having launched private-banking offerings across six mainland cities. The bank's CEO for wealth and personal banking, Nuno Matos, has emphasised that mainland China is central to HSBC's ambition to be the leading wealth manager in Asia.
Citi, on the other hand, has confirmed that it will continue to cater to ultra-high net worth Chinese clients through its international personal bank and private bank, based in regional wealth hubs Hong Kong and Singapore. The bank also plans to lend to institutions in China.
The acquisition is part of HSBC's broader strategy to expand its reach among China's wealthy, focusing on the affluent and emerging affluent segments. The bank has pledged to bolster its Asian wealth business by more than $3.5 billion over the next five years, according to The Wall Street Journal.
Notably, HSBC has recently acquired full ownership of its Chinese life insurance arm, HSBC Life China. However, it is not mentioned if the bank plans to purchase licensing rights for any specific business or service in relation to this acquisition.
The deal will advance Citi's wind-down of its China consumer banking business, which was announced in December 2021. Rumours of the Citi-to-HSBC transfer had surfaced last month.
It is worth noting that the financial terms of the transaction were not disclosed. The article does not provide information about any retail-related activities or initiatives by HSBC in Asia.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
- Abdominal Fat Accumulation: Causes and Strategies for Reduction
