HSBC acquires China’s Citigroup’s consumer wealth portfolio

HSBC expands its presence in mainland China by successfully acquiring Citigroup’s consumer wealth portfolio, adding over 300 employees to its China headcount, according to Reuters on Tuesday.

The acquired portfolio includes investment assets, deposits, and client relationships across 11 major Chinese cities. This integration strengthens HSBC’s wealth management capabilities in the country.

HSBC, headquartered in London, has prioritised expanding its Asian operations, particularly in China, a key market for the bank. This strategy involves exiting less profitable ventures elsewhere to focus on Asia’s growth potential.

Nuno Matos, CEO of HSBC’s wealth and personal banking business, emphasised the bank’s dedication to the Chinese market. The acquisition, he stated, allows them to assist clients in diversifying assets and achieving long-term financial goals.

HSBC reported significant growth in its China wealth management business during 2023. Wealth invested assets climbed by 53 per cent, and the bank’s wealth client base expanded by over 30 per cent year-on-year.

The acquisition, first announced in October 2023, involves approximately $3.6 billion in total deposits and investment assets under management.