Jun 12, 2024 05:59 PM

HSBC Wraps Up Acquisition of Citi’s Mainland Retail Wealth Management Portfolio

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What’s new: A wholly owned subsidiary of HSBC Holdings PLC has completed its acquisition of Citigroup Inc.’s retail wealth management business on the Chinese mainland, the London-headquartered bank announced Tuesday.

The deal has brought customers, deposits and investment assets from 11 mainland cities into the wealth and personal banking operations of HSBC Bank (China) Co. Ltd., according to the announcement. HSBC has also taken on more than 300 former Citigroup employees as part of the acquisition.

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HSBC has acquired Citigroup’s retail wealth management business in 11 mainland Chinese cities, including assets and over 300 former employees.
HSBC aims to be the leading wealth manager for affluent and high-net-worth individuals in China.
As of the end of 2023, HSBC Bank (China) had assets totaling 616.7 billion yuan ($87.1 billion), a 3.3% increase year-on-year.

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Who’s Who

HSBC Holdings PLC: HSBC Holdings PLC, headquartered in London, has completed its acquisition of Citigroup Inc.’s retail wealth management business in mainland China. This deal adds customers, deposits, and investment assets from 11 cities to HSBC Bank (China) Co. Ltd., incorporating over 300 former Citigroup employees. HSBC aims to become the leading international wealth manager for mass affluent and high-net-worth individuals in China. The bank had 616.7 billion yuan ($87.1 billion) in total assets by the end of 2023.

Citigroup Inc.: Citigroup Inc. has exited its consumer banking business in China as part of a broader strategy to scale back retail operations in 14 markets globally. The wind-down was announced in December 2022, and the sale of its mainland retail wealth management portfolio to HSBC was completed, including the transfer of customers, assets, and over 300 employees.

HSBC Bank (China) Co. Ltd.: HSBC Bank (China) Co. Ltd. is a subsidiary of HSBC Holdings PLC, focusing on wealth and personal banking. It completed its acquisition of Citigroup's retail wealth management business in mainland China, incorporating customers, deposits, investment assets, and over 300 Citigroup employees. At the end of 2023, HSBC Bank (China) reported total assets of 616.7 billion yuan ($87.1 billion), marking a 3.3% year-on-year increase. CEO Nuno Matos aims to make it the leading international wealth manager in China.

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What Happened When

April 2021：: Citigroup first revealed its intent to exit its China consumer banking business.

December 2022：: Citigroup announced that it was winding down its consumer banking business in China.

October 2023：: HSBC’s acquisition of Citigroup’s mainland retail wealth management portfolio was announced.

By the end of 2023：: HSBC Bank (China) had 616.7 billion yuan ($87.1 billion) in total assets, up 3.3% year-on-year.

June 11, 2024：: HSBC Holdings PLC announced the completion of its acquisition of Citigroup Inc.’s retail wealth management business on the Chinese mainland.

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