Citigroup Inc on Monday announced it has agreed to sell its onshore consumer wealth portfolio in China to HSBC Bank China, an arm of London-based lender HSBC Holdings PLC.

The New York-based retail, commercial and investment bank said the portfolio sale includes clients, assets under management, and deposits, for a total value of around $3.6 billion.

The terms of the transaction were not disclosed, and the deal is expected to close in the first half of 2024, Citi said.

‘Today’s announcement progresses the wind-down of Citi’s consumer banking business in China, which was announced in December 2022. Citi first announced its plan to exit China consumer banking in April 2021 as part of the firm‘s broader global strategy refresh,’ the US bank explained.

Citi noted the transaction does not include its institutional businesses in the country.

‘Citi will continue to serve the needs of affluent to ultra-high net worth Chinese individuals through its regional wealth hubs in Singapore and Hong Kong leveraging its International Personal Bank and Citi Private Bank businesses,’ it confirmed.

Citi previously announced its intention to exit consumer banking in 14 markets across Asia, Europe, the Middle East and Mexico. It has closed sales for eight of these markets, including Australia, Bahrain, India, Malaysia, the Philippines, Taiwan, Thailand and Vietnam.

It is planning a sale of its Indonesian consumer banking business later in the year, and is progressing the previously-announced wind-downs of its Korean consumer banking business and overall presence in Russia. Citi said it is also pursuing an initial public offering of its consumer, small business and middle market banking operations in Mexico.

HSBC is listed in Hong Kong as well as London. However, trading in Hong Kong was suspended on Monday due to a tropical storm.

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