US-based Investment banking company Citigroup has agreed to sell its onshore consumer wealth portfolio in China to HSBC Bank China, a wholly owned subsidiary of HSBC.

Citi will sell its consumer wealth business, including clients, assets under management (AUM) and deposits in China, retaining its institutional businesses in the country.

The transaction, which covers around $3.6bn in total deposits and investment AUMs, is expected to be completed in the first half of 2024.

Citi legacy franchises head Titi Cole said: “We are taking important steps forward in exiting our consumer banking business in China and continue to make progress in our divestitures as part of our strategy to simplify Citi.”

Citi China country officer and president Christine Lam said: “Citi is proud to have a long history in China. We are deeply rooted in this market. We look forward to continuing to support our institutional clients in China as their preeminent banking partner for cross-border needs.”

Citi said that the agreement is in line with its plans to withdraw from consumer banking business in China, which was announced in December last year.

The company planned to exit from consumer banking business across 14 markets in Asia, Europe, the Middle East, and Mexico as part of its strategic reorganisation.

It has now divested its businesses in eight markets, Australia, Bahrain, India, Malaysia, the Philippines, Taiwan, Thailand and Vietnam.

Citi said that it 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.

Furthermore, HSBC would extend offers to certain employees supporting Citi’s local consumer wealth business in China.

The transaction is a part of HSBC’s strategy to expand in China, in line with its plans to exit less profitable geographies to focus on its operations in Asia, Reuters reported last month.