Citigroup plans to sell Chinese retail-wealth business to HSBC

  • Stock Market News
Citigroup plans to sell Chinese retail-wealth business to HSBC
Credit: © Reuters.

Citigroup (NYSE: C ) is reportedly in negotiations to sell its retail-wealth business in China to British competitor HSBC, as part of a broader strategy to exit consumer banking outside of its home market. The deal, expected to be announced next month, follows Citigroup's announcement last year that it would wind down its consumer-banking business in China.

The retail-wealth segment in China caters to customers with assets between $100,000 and $1 million. Citigroup's China retail wealth deposits and assets under management are currently valued between $3 billion and $4 billion. Approximately 400 employees in China are expected to transition to HSBC as part of the sale.

This move aligns with HSBC's commitment to expand its Asian wealth business, having pledged more than $3.5 billion two years ago for this purpose. The bank has since employed 1,400 wealth managers in mainland China through its branchless venture, Pinnacle, to advise on investments and sell insurance.

Earlier this month, Citigroup announced plans to simplify its international structure by eliminating some regional jobs. This decision is part of Chief Executive Jane Fraser's strategy to shake up the bank's executive ranks and eliminate overlapping roles.

In other news, Citigroup plans to hire a global instant payments executive for its treasury and trade solutions division, which spans more than 60 countries. The executive will oversee real-time payment development for various entities including corporations, banks, non-bank financial institutions, e-commerce marketplaces, and public sector organizations. The new role offers a salary of up to $300,000, with the bank seeking candidates with at least 12 years of experience in transaction banking.

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