HSBC Bank (China) Company Limited, a subsidiary of HSBC Holdings plc, has completed the acquisition of Citi’s retail wealth management portfolio in mainland China, marking a significant expansion in its wealth management capabilities.
This strategic acquisition encompasses investment assets, deposits, and associated wealth customers from 11 major cities, all of which are now integrated into HSBC China’s Wealth and Personal Banking (WPB) operations. Additionally, over 300 former Citi employees have transitioned to HSBC as part of this deal.
Nuno Matos, CEO of Wealth and Personal Banking at HSBC, emphasized the strategic fit of this acquisition for HSBC’s growth ambitions in China’s wealth market.
“HSBC aims to be the leading international wealth manager for mass affluent and high-net-worth individuals in mainland China. This portfolio enhances our growing wealth businesses in the country, underscoring our commitment to the Chinese market and our dedication to helping clients diversify their assets and improve their long-term returns,” Matos stated.
HSBC’s Wealth Footprint in China
HSBC boasts one of the most extensive wealth service networks among foreign banks in mainland China and holds the largest Qualified Domestic Institutional Investor (QDII) quota. The bank’s wealth management services in China span insurance, retail wealth, private banking, asset management, and fintech. HSBC China is focused on leveraging synergies across these services to cater to the comprehensive wealth management needs of its customers.
In 2023, HSBC saw a 53% increase in wealth invested assets in mainland China and expanded its wealth client base by over 30% year-on-year. The first quarter of 2024 witnessed an almost two-fold increase in net new invested assets (NNIA) compared to the previous year, contributing to a 33% year-on-year growth in NNIA across Asia, amounting to USD 19 billion.
This acquisition further strengthens HSBC’s wealth management capabilities both in mainland China and across the broader Asian region.
Recent Investments in China’s Wealth Market
HSBC has recently made significant investments to bolster its wealth management services in mainland China. Key developments include:
- Launching a flagship wealth center in Shanghai in January 2024.
- Offering over 700 funds across onshore and offshore asset classes, with “Southbound” investors having access to more than 100 mutual funds under the Cross-boundary Wealth Management Connect Scheme.
- Providing a wide array of offshore funds under the QDII scheme from various offshore fund house partners.
In 2023, HSBC Insurance Brokerage Company Limited became the first international wealth management institution in mainland China to hold dual licenses for insurance brokerage and fund sales, offering both insurance products from HSBC Life and mutual funds.
HSBC Global Private Banking, recognized as the Best International Private Bank in mainland China, has introduced hedge funds through trust plans, family trust advisory services, and client account services and investments via its mobile app.
HSBC’s Pinnacle mobile financial planning business now employs over 1,700 personal wealth planners, with plans to expand to 1,900 by the end of 2024.
Notably, the acquired portfolio does not include Citi China’s credit cards, mortgages, or other loan products, focusing exclusively on wealth management assets and services.
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