HSBC Holdings PLC (LSE:HSBA) is set to significantly expand its Chinese operations with the acquisition of Citigroup Inc (NYSE:C)'s consumer wealth portfolio in the country for an undisclosed sum.
Expected to close in the first half of 2024, the deal includes clients, assets under management (AUM), and deposits totalling around $3.6 billion.
It aligns with HSBC's strategic focus on Asia as a key revenue generator, as the bank continues to exit less profitable markets.
For Citigroup, the sale marks another step in its ongoing strategy to wind down its consumer banking business in China, a plan initially announced in December 2022.