Nvidia, ByteDance, and the U.S.-China AI Chip Standoff Over H200 Exports 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
SpaceX Pushes for Early Stock Index Inclusion Ahead of Potential Record-Breaking IPO 
Toyota’s Surprise CEO Change Signals Strategic Shift Amid Global Auto Turmoil 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
Once Upon a Farm Raises Nearly $198 Million in IPO, Valued at Over $724 Million 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
Missouri Judge Dismisses Lawsuit Challenging Starbucks’ Diversity and Inclusion Policies 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Rio Tinto Shares Hit Record High After Ending Glencore Merger Talks 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Citigroup Inc. has officially confirmed the sale of its China consumer wealth portfolio to HSBC Holdings Plc. This deal includes the transfer of clients, assets under management (AUM), and deposits.
"Today's announcement progresses the wind-down of Citi's consumer banking business in China, which was announced in December 2022," Reuters quoted a statement by the U.S.-headquartered bank.
The total value of deposits and investment AUMs covered by the agreement is estimated at around $3.6 billion. According to Forbes, the transaction is expected to be finalized in the first half of 2024, pending regulatory approval and completion of necessary formalities.
Citi's China Consumer Banking Exit and HSBC's Expansion Plan
Citi's consumer banking business focused primarily on serving affluent clients through deposit, fund, and structured product offerings. However, its consumer banking business in China pales compared to local Chinese banks and foreign competitors like Standard Chartered, which boasts a larger network of retail branches dedicated to wealth management. This move by Citi aligns with its mission to concentrate on more profitable markets and reduce its presence in less lucrative regions.
As Europe's largest lender, HSBC views China as one of its key markets, driving its strategy to exit less profitable geographies. With the regulatory approvals obtained in recent years, HSBC can now offer comprehensive wealth management and mobile fund and insurance solutions in mainland China.
Furthermore, HSBC's strategic investment in Shanghai MediTrust Health Technology Co. Ltd., announced earlier this year, further demonstrates its commitment to strengthening ties within the Chinese market.
Citi Emphasizes Continued Commitment to Chinese Clients
The agreement between Citi and HSBC specifically pertains to the wealth portfolio and does not include Citi's institutional businesses. To serve the needs of their affluent to ultra-high-net-worth Chinese clients, Citi will continue operating through its regional wealth hubs in Singapore and Hong Kong. This ensures their valuable clients still benefit from the bank's expertise and services.
With this latest sale, Citigroup has made significant progress in its plan to exit consumer banking across multiple global markets. Citi plans to complete the sale of its Indonesia consumer business later this year. The bank has also initiated winding down its consumer business in Korea and reducing its overall presence in Russia.
Photo: Rubaitul Azad/Unsplash
