Investing.com -- Citigroup (NYSE:C) has agreed to sell its retail wealth management portfolio in mainland China to HSBC (LON:HSBA), the lender said in a statement on Monday.
The transaction, which will cover total deposits and investment assets under management of around $3.6 billion across 11 large Chinese cities, is expected to close in the first half of 2024. Terms of the deal were not disclosed.
The bank said it will continue to serve affluent to ultra-high net worth Chinese individuals through its regional wealth hubs in Singapore and Hong Kong.
Citi had previously announced plans to divest its retail operations in several Asian countries. The U.S.-based bank is aiming to offload its Indonesia consumer business later this year, it noted, adding that wind-downs of a similar division in Korea and its overall presence in Russia are in progress.
Shares in Citi were trading marginally lower in premarket trading on Monday.
For Asia-focused HSBC, the move will expand its presence in China at a time when the company is looking to the world's second-biggest economy to help drive revenues. London-listed shares in HSBC were down following the announcement.