Citi agreed to sell its onshore consumer wealth portfolio in China, including clients, assets under management and deposits, to HSBC Bank China. HSBC plans to extend offers to in-scope employees supporting Citi’s local consumer wealth business in China.

The transaction covers total deposits and investment assets under management of approximately $3.6 billion. Terms of the transaction were not disclosed, and the deal is expected to close in the first half of 2024.

Today’s announcement progresses the wind-down of Citi’s consumer banking business in China, which was announced in December 2022.  Citi first announced its plan to exit China consumer banking in April 2021 as part of the firm’s broader global strategy refresh.

This announcement does not include Citi’s institutional businesses in China.

Citi will continue to serve the needs of affluent to ultra-high net worth Chinese individuals through its regional wealth hubs in Singapore and Hong Kong, leveraging its International Personal Bank and Citi Private Bank businesses.

Citi first opened in China in 1902 and became one of the first global banks to incorporate locally in 2007. Today, Citi serves 70% of Fortune 500 companies in the market, as well as more than 300 local enterprises and many more emerging new economy companies.

“We are taking important steps forward in exiting our consumer banking business in China and continue to make progress in our divestitures as part of our strategy to simplify Citi,” Titi Cole, Citi’s head of legacy franchises, said. “This is an excellent outcome for our local consumer wealth colleagues and clients in China.”

“This transaction serves the interest of our clients, colleagues and all parties involved,” Christine Lam, Citi China country officer and president of Citibank (China), said. “Citi is proud to have a long history in China. We are deeply rooted in this market. We look forward to continuing to support our institutional clients in China as their preeminent banking partner for cross-border needs.”

Since announcing its intention to exit consumer banking across 14 markets in Asia, Europe, the Middle East and Mexico as part of its strategic refresh, Citi has now closed sales in eight markets, including Australia, Bahrain, India, Malaysia, the Philippines, Taiwan, Thailand and Vietnam.

Citi plans to complete the sale of its Indonesian consumer business later this year. In addition to China, the previously announced wind-downs of Citi’s consumer business in Korea and overall presence in Russia are in progress. Citi also announced that it will pursue an IPO of its consumer, small business and middle-market banking operations in Mexico.