Citigroup in Talks to Sell China Onshore Retail Wealth to HSBC

Citigroup Inc. is in talks to sell its China onshore retail wealth business to HSBC Holdings Plc, as the latter continues to build out its presence in the mainland, according to people familiar with the matter.

(Bloomberg) — Citigroup Inc. is in talks to sell its China onshore retail wealth business to HSBC Holdings Plc, as the latter continues to build out its presence in the mainland, according to people familiar with the matter.

Citi’s China retail wealth business has about $4 billion of assets and deposits and about 400 staff, which would be transferred to HSBC if the deal goes through, the people said, asking not to be identified as they are not authorized to speak publicly. The deal could be announced as early as next month, one of the people said.

Citi said late last year it will wind down its consumer banking business in China, exiting products such as deposits, insurance and mortgages. The US bank said at the time that it will continue to actively pursue sales of portfolios from its Chinese consumer banking business.

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. The London-based lender has been poaching talent from Credit Suisse and others over the past year.

Reuters earlier reported on the potential sale. Citigroup and HSBC declined to comment. 

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