HONG KONG: HSBC (HSBA.L) is set to acquire Citigroup's (C.N) 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 sources could not be named as they were not authorised to speak to the media.

HSBC and U.S.-based Citi declined to comment.

Citi said in December it was looking to sell some of its portfolios as part of its plan to wind down its China retail banking business.

Citi's China wealth management operations, part of the retail banking business it has planned to exit since 2021, mainly serves mass affluent clients in the world's second-largest economy.