Citigroup Inc.’s (NYSE:C) global wealth head, Andy Sieg, has unveiled plans to bolster the company’s wealth management operations across the Greater Bay Area and the broader Asian region, with Hong Kong serving as its strategic hub. This initiative underscores Citi’s aim to tap into Asia’s burgeoning wealth, leveraging Hong Kong’s status as a financial powerhouse.
Despite the decision to divest its mainland China wealth business to HSBC Holdings plc, Citi remains steadfast in its commitment to Hong Kong and China. While exiting its consumer wealth segment in China, Citi intends to continue serving ultra-high net worth clients in China through its regional wealth centers in Singapore and Hong Kong, via its International Personal Bank and Citigroup’s Private Bank operations.
Sieg emphasized, “Our decision to divest the onshore consumer business in mainland China was based on scalability concerns, consistent with similar divestitures in other markets. Hong Kong serves as our strategic base to cater to clients in mainland China.”
He further iterated, “Our dedication to Hong Kong and China is unwavering. We are intensely focused on leveraging this region for the growth of Citi’s wealth management division in the foreseeable future.”
Citi remains optimistic about the projected $100 trillion wealth creation globally over the next decade, with Asia expected to witness the highest growth rate. Sieg remarked, “This presents a significant opportunity for wealth management, with Hong Kong positioned at the forefront of this global wealth surge.”
In 2021, Citi set a target of securing $150 billion in new business in the Asia region by 2025, demonstrating its commitment to expanding its global wealth management footprint. Sieg has personally visited Hong Kong and several Greater Bay Area cities, including Shenzhen and Guangzhou, to engage with staff and high-net-worth clients.
He noted, “As we envision the future of our wealth business, Asia holds a pivotal position, and we take pride in our presence in Hong Kong and Singapore to serve clients in the region.”
Looking ahead, Citi plans to augment its credit card, retail banking, private banking, and family office businesses in the coming years. Furthermore, initiatives by the Hong Kong government in March 2023 to attract family offices and international investors underscore the city’s appeal as a financial epicenter and gateway for investments in mainland China and beyond.
In the past six months, Citi’s shares have surged by 38.1%, outpacing the industry’s growth rate of 29.9%.
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