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Citigroup plans to use Hong Kong as its base and expand its wealth management business in the Greater Bay Area and other parts of Asia, according to Citigroup’s head of global wealth.
Andy Sieg said after visiting a number of Greater Bay Area cities last week that the US banking group remains committed to Hong Kong and China despite selling its mainland wealth business to HSBC in October. said.
“The Mainland China land consumer business was sold because, like other markets in which we sold such business, we did not have the scale necessary to compete,” Sieg said. “Our strategy is to make Hong Kong a hub to serve our customers in mainland China.
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“Our commitment to Hong Kong and China could not be stronger. We are highly focused on this region as a source of growth for Citi’s asset management in the coming years.”
Andy Sieg, head of global wealth at Citi, expects Hong Kong to play a key role in the company’s wealth management business. Photo: Jonathan Wong alt=Andy Sieg Citi’s head of global wealth expects Hong Kong to play a key role in its wealth management business. Photo: Jonathan Wong>
Citigroup believes that US$100 trillion of wealth will be created worldwide over the next decade, with the highest growth rates expected to be in Asia.
“This represents a huge opportunity for wealth management, and Hong Kong is the epicenter of this global wealth creation,” Sieg said.
In 2021, the banking group set a target of acquiring US$150 billion of new business in the region by 2025.
The veteran banker returned to Citigroup last September. He started his career at Merrill Lynch in 1992 and from 2005 he joined Citigroup until 2009, and then at Bank of America where he worked for 14 years.
Sieg visited Hong Kong and several cities in the Greater Bay Area, including Shenzhen and Guangzhou, to meet with staff and wealthy clients.
Asked about a recent column by former Morgan Stanley chief economist Stephen Roach in which he declared “Hong Kong is over,” Sieg said he strongly disagreed with that statement.
“I spent almost a week with our team and clients and they were all incredibly optimistic about Hong Kong’s future as a market and incredibly enthusiastic about Citi’s business opportunities in Hong Kong. was.
“As we think about the future of our wealth business, Asia is right at the heart of it and we are very proud of our presence in Hong Kong and Singapore to serve clients in this region.”
He said Hong Kong’s strength is its proximity to the Greater Bay Area, which the Chinese government created five years ago to integrate Macau and nine mainland cities into an economic powerhouse.
Sieg said Citigroup will also expand its credit card, retail banking, private banking and family office businesses in the coming years.
In March 2023, the Hong Kong government announced several measures to encourage billionaires to set up family offices to pursue investments, philanthropy and succession planning.
Measures announced by CEO John Lee Kaciu to attract 200 new family offices by 2025 include a revamped investment migration program, tax breaks and art storage facilities. included.
“Hong Kong’s deep history as a financial center and its proximity to what’s happening in mainland China make it a great base for family offices,” Sieg said.
He said many international family offices want to use Hong Kong as a stepping stone for investments in mainland China, while wealthy clients in the Greater Bay Area want to diversify their investments through Hong Kong. Ta.
To tap into the growing number of mainland customers, the US bank opened the world’s first wealth center in the tourist destination of Tsim Sha Tsui in November 2022. K11 Atelier’s center opened just before the city reopened its borders after the coronavirus pandemic.
As a result, the bank reported a 61 percent increase in the number of new international retail banking customers compared to pre-COVID-19 levels in 2019.
“We see Hong Kong and Singapore as important centers for the future of Asia’s wealth,” Sieg said. “Both cities will be successful markets as they act as bridges between China and the broader markets of Southeast Asia and the world.”
This article originally appeared in the South China Morning Post (SCMP), the most authoritative news organization on China and Asia for more than a century. For more stories from SCMP, explore the SCMP app or visit SCMP on Facebook. twitter page. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2024. South China Morning Post Publishers Ltd. All rights reserved.
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