HSBC Holdings Plc agreed to buy Citigroup Inc’s retail wealth management portfolio in mainland China, adding to its expansion in the world’s second-largest economy.
The portfolio comprises about $3.6 billion in assets and deposits from wealth customers across 11 major cities, HSBC said in a statement. Terms of the transaction weren’t disclosed and the deal is expected to close in the first half of 2024, Citi said.
HSBC is pushing to become a leader in one of the world’s fastest growing wealth markets as part of its pivot to Asia strategy. Even so, the deal comes amid growing concern over the direction of the Chinese economy amid a protracted slump in the country’s real estate market, which had been a major source of wealth growth, and a crack down on private enterprise.
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