Citi has completed the sale an migration of its onshore consumer wealth portfolio in China to HSBC Bank China (HSBC), including the transfer of more than 300 employees, including wealth customers in Shanghai and 10 other cities in mainland China (excluding credit cards and mortgages).
Citi and HSBC first announced the undisclosed deal which included $3.6 billion of assets and deposits (as of Ausgust 2023) in October 2023 as Citi exited 14 consumer businesses in Asia, Europe, the Middle East and Mexico (where it is preparing an initial public offering), as part of a switch in strategy.
Citi has now closed sales in nine markets: Australia, Bahrain, India, Indonesia, Malaysia, the Philippines, Taiwan, Thailand and Vietnam. Citi is also in the process of wind-downs in Korea and Russia.
As part of the deal in China, Citi will also transfer its remaining credit card portfolio to Taiwan's Fubon Bank (China) later this year.
Citi’s institutional businesses in China are excluded from the sale. Luke Lu, Citi country officer and banking head for China, said in a statement, “Citi is proud to have a long history in China, and we are intently focused on growing Citi’s institutional businesses in China, serving clients in the market through our network to support their cross-border needs.”
The bank first opened in China in 1902 and serves around 70% of Fortune 500 companies in the market, over 300 local enterprises and many “emerging new economy” companies, according to a Citi statement. As these companies expand internationally, Citi said it wants to help enable their growth in other markets and facilitate access to capital through its global network and cross-border financing solutions.
Citi is also pursuing the establishment of a wholly-owned securities and futures company in onshore China.
At the time of the deal, David Liao, HSBC Asia Pacific co-CEO, said: “Our agreement to acquire Citi’s wealth management portfolio in China is a testament to our confidence in the country’s long-term economic development.”
