HSBC is set to acquire Citigroup’s China consumer wealth management business, which manages more than $3 billion in assets, two sources with knowledge of the matter said, in a major boost to the London-based bank’s business in that country. The transaction, the financial details of which were not immediately known, will also see Asia-focussed HSBC taking over “a few hundreds” of Citi‘s China-based staff, said one of the sources. The deal could be announced as soon as next month, the two sources said, who could not be named as they were not authorised to speak to the media. HSBC and Citi declined to comment. The acquisition adds to a list of moves by HSBC to expand 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. Looming uncertainties around doing business in China have dampened the appetite of Western companies, with fewer banks boosting their presence in face of weaker economic growth and new national security restrictions on data transfers.
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