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Citigroup Inc said on Monday it had agreed to sell its China consumer wealth portfolio, including clients, assets under management (AUM) and deposits, to Asia-focused HSBC Holdings Plc.

The deal covers total deposits and investment AUMs of about $3.6 billion, and is expected to close in the first half of 2024.

Financial details of the transaction were not disclosed.

“Today’s announcement progresses the wind-down of Citi’s consumer banking business in China, which was announced in December 2022,” the US-headquartered bank said in a statement.

Citi first announced its plan to exit China consumer banking in April 2021 as part of a global strategy revamp.

The consumer banking business mainly served rich clients with deposit, fund and structured product offerings.

Citigroup CEO makes sweeping management changes to simplify bank, cut jobs

Reuters first reported late last month that HSBC was set to acquire Citi’s China consumer wealth business, in a major boost to the London-based bank’s business in the world’s second-largest economy.

Citi’s consumer banking business size in China is dwarfed by Chinese banks and foreign peers including Standard Chartered, all which have more retail branches handling wealth management.

The acquisition of Citi’s wealth portfolio will help HSBC expand its presence in China, one of its key markets as Europe’s largest lender vows to exit less profitable geographies to focus on its key revenue generator, Asia.

The deal with HSBC does not include Citi’s institutional businesses, the bank said, adding it would continue to serve the needs of affluent to ultra-high net worth Chinese clients via its regional wealth hubs in Singapore and Hong Kong.

Since announcing its intention to exit consumer banking across 14 markets in Asia, Europe, the Middle East and Mexico as part of its strategic revamp, Citi has now closed sales in eight markets, it said.

Apart from the China consumer banking deal, Citi plans to complete the sale of its Indonesia consumer business later this year, the bank statement said.

Previously announced wind-downs of Citi’s consumer business in Korea and its overall presence in Russia are in progress.

Citi has also announced it will pursue an IPO of its consumer, small business and middle market banking operations in Mexico.

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