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(Reuters) – Bank Citigroup Inc said on Monday it has agreed to sell its Chinese wealth management business, including clients, assets under management (AUM) and deposits, to HSBC Holdings, which is seeking to sell itself. develop in China, one of its main markets.
The transaction involves deposits and assets under management of approximately $3.6 billion and is expected to be finalized during the first half of 2024.
Financial details of the transaction were not disclosed.
“Today’s announcement advances the liquidation of Citi’s consumer banking business in China, which was announced in December 2022,” the US bank said in a statement.
Citi first announced plans to exit retail banking in China in April 2021 as part of an overhaul of its global strategy.
The wealth management business primarily served high-net-worth clients with deposit, fund and structured product offerings.
Reuters first reported late last month that HSBC was close to acquiring the business.
The acquisition of Citi’s portfolio will help HSBC expand its presence in China, one of its main markets, as Europe’s top bank pledges to withdraw from less profitable regions to focus on its main revenue generator , Asia.
Citi also plans to complete the sale of its consumer services business in Indonesia later this year, the bank said in a statement.
(Reporting by Aishwarya Nair in Bangalore and Xie Yu in Hong Kong; written by Sumeet Chatterjee; Diana Mandiá, edited by Blandine Hénault)
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