HSBC is reportedly in talks with investment bank and financial services company Citigroup to acquire the latter’s consumer wealth management business in China.

A deal in this regard is likely to be announced next month. Its financial aspects of the potential deal are yet to be known.

As part of the acquisition, the British financial services company will also take over a few hundreds of Citigroup’s China-based personnel, reported Reuters, citing sources with knowledge of the matter.

The news agency also said that Citigroup’s China retail-wealth business manages more than $3bn in assets.

Through the transaction, HSBC is aiming to expand in China.

The British company’s move is in line with its commitment to expand its Asian wealth business, reported various media agencies. HSBC pledged over $3.5bn in 2021 for the expansion.

HSBC is also reported to have employed 1,400 wealth managers in China since 2021 through Pinnacle, the lender’s branchless venture.

Besides, the financial services company intends to leverage its insurance brokerage network to commence fund sales to affluent Chinese people next month, reported Reuters.

Last month, Citi completed the divestiture and full migration of its Taiwan consumer businesses to DBS.

The sale included retail banking, credit card, mortgage, and unsecured lending businesses along with the transfer of approximately 3,000 employees.

In July 2023, HSBC opened its global private banking (GPB) business in India to cater to high-net-worth and ultra-high-net-worth professionals, entrepreneurs, and their families.

The new business targeted customers having investable assets of over $2m.

HSBC launched the GPB business as part of its goal to further lead wealth management in Asia.