Citigroup has announced its plans to sell its onshore consumer wealth portfolio in China to HSBC Holdings as part of its ongoing exit from consumer banking in certain parts of Asia.

The sale will include Citigroup's China consumer wealth portfolio, including clients, assets under management, and deposits, valued at approximately $3.6 billion. HSBC Bank China will be the buyer.

Christine Lam, Citi China country officer and president of Citibank (China), stated that this transaction is in the best interest of clients, colleagues, and all parties involved.

It's important to note that this deal does not include Citi's institutional businesses in China, where it holds a leading position. The transaction is expected to be completed in the first half of 2024, with the specific terms remaining undisclosed.

This move will contribute to HSBC's expansion in China, further strengthening its presence in the country. Nuno Matos, chief executive of wealth and personal banking at HSBC, emphasized their commitment to becoming the leading wealth manager in Asia and highlighted mainland China's significance in achieving that goal.

Citigroup had previously announced its decision to wind down its consumer-banking operations in China in December 2021, as part of a strategic shift under Chief Executive Jane Fraser. The bank aims to focus its resources on wealth management and corporate customers in Asia.

In January 2022, Citigroup also agreed to sell its consumer-banking franchises in Indonesia, Malaysia, Thailand, and Vietnam to United Overseas Bank.

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