Priya Patel
TLDR:
- Citigroup plans to leverage Hong Kong’s finance hub status to grow wealth management business in Asia and the Greater Bay Area.
- They believe Hong Kong will play a key role in the global wealth creation of US$100 trillion over the next 10 years, with the highest rate of growth in Asia.
Citigroup’s global head of wealth, Andy Sieg, stated that the US bank will expand its wealth management business in the Greater Bay Area and the rest of Asia from their base in Hong Kong. Despite selling its mainland China wealth business to HSBC in October, Sieg emphasized the firm’s commitment to Hong Kong and China, viewing Hong Kong as a strategic base to serve clients in mainland China.
The bank believes that Hong Kong’s proximity to the Greater Bay Area, which was created by Beijing five years ago, provides a strong advantage. Citigroup aims to capture the growing wealth in the region by expanding its credit card, retail banking, private banking, and family office businesses in the coming years.
In March 2023, the Hong Kong government unveiled measures to attract billionaires to set up family offices in the city, aiming to attract 200 new family offices by 2025. Andy Sieg highlighted that Hong Kong is an ideal base for family offices due to its status as a financial center and its proximity to mainland China, allowing for investment diversification.
Citigroup opened its first wealth center globally in Hong Kong in November 2022, targeting the growing number of mainland clients. The center contributed to a 61% increase in the number of new international personal banking customers compared to pre-Covid levels in 2019.
Overall, Citigroup sees Hong Kong and Singapore as key centers for the future of wealth in Asia, serving as a bridge between China and the broader markets of Southeast Asia and the world.
