HSBC has agreed to buy Citigroup's retail wealth management portfolio in China, expanding its presence in the world's second-largest economy. The portfolio includes assets and deposits of high-net-worth clients in 11 major cities worth approximately USD 3.6 billion.

In recent years, London-based HSBC has focused on expanding its activities in China, while scaling back its activities in Europe and North America. Asia plays a key role in the bank's growth strategy and this transaction underlines the critical importance of mainland China in the bank's strategic approach. Today, mainland China accounts for nearly 50% of Asia's financial wealth, an increase of around nine times since 2006. HSBC projects that the number of adults in mainland China who own a net worth of at least US$250,000 will double to approximately 351 million by 2030.

Meanwhile, Citigroup has unveiled its intention to exit its consumer banking operations in several markets in 2021 as part of a new strategy. As part of this reorganization, the bank announced that it would withdraw from about a dozen Asian markets, as well as other regions in Europe, the Middle East and Mexico. Since announcing the initiative, Citigroup recently announced the completion of sales in eight markets, including Australia, Bahrain, India, Malaysia, the Philippines, Taiwan, Thailand and Vietnam, with plans to complete the sale of the consumer division in Indonesia later this year.