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Citigroup will develop its wealth administration enterprise within the Higher Bay Space and remainder of Asia from its base in Hong Kong, in keeping with its world wealth head.
The US banking group stays dedicated to Hong Kong and China regardless of promoting its mainland wealth enterprise to HSBC in October, Andy Sieg mentioned after visiting numerous Higher Bay Space cities final week.
“The onshore shopper enterprise in mainland China was bought as a result of, much like different markets the place we divested such companies, it simply didn’t have the mandatory scale to compete,” Sieg mentioned. “Having Hong Kong as our base to serve our shoppers in mainland China is our technique.
“Our dedication to Hong Kong and to China couldn’t be stronger. We’re extraordinarily targeted on this area as a supply of development for Citi’s wealth administration within the years forward.”
Citigroup believes US$100 trillion of wealth creation will happen internationally over the subsequent 10 years, with the very best charge of development in Asia.
“That represents an unlimited alternative for wealth administration, and Hong Kong is the epicentre of this world wealth creation,” Sieg mentioned.
The banking group in 2021 set a goal of capturing US$150 billion of latest enterprise within the area by 2025.
Hong Kong’s star shines as Greater Bay Area’s rich tap tax breaks, incentives
Hong Kong’s star shines as Greater Bay Area’s rich tap tax breaks, incentives
The veteran banker final September rejoined Citigroup. He began his profession at Merrill Lynch in 1992, joined Citigroup from 2005 to 2009 adopted by 14 years with Financial institution of America.
Sieg visited Hong Kong and a handful of Higher Bay Space cities together with Shenzhen and Guangzhou to satisfy workers and high-net-worth shoppers.
Requested concerning the current column by Stephen Roach, wherein the previous Morgan Stanley chief economist declared “Hong Kong is over”, Sieg mentioned he strongly disagreed with the assertion.
“I spent nearly every week with our workforce and shoppers, and they’re all extremely optimistic about the way forward for Hong Kong as a market and extremely energised concerning the enterprise alternative for Citi in Hong Kong.
“Once we take into consideration the longer term for our wealth enterprise, Asia is on the very centre and we’re very pleased with the presence that we have now in Hong Kong and Singapore to serve shoppers within the area.”
He mentioned Hong Kong’s energy is its proximity to the Higher Bay Space, which Beijing created 5 years in the past to combine the town with Macau and 9 mainland cities into an financial powerhouse.
Citigroup will even develop its bank card, retail banking, personal banking and household workplace companies within the coming years, Sieg mentioned.
The Hong Kong authorities in March 2023 unveiled a number of measures to draw billionaires to arrange household places of work – to pursue investments, philanthropy and succession planning – within the metropolis.
A refreshed investment-migration programme, tax breaks and artwork storage amenities are among the many measures introduced by Chief Government John Lee Ka-chiu to draw 200 new household places of work by 2025.
“Hong Kong gives an excellent base for household places of work as a result of it has a mix of deep historical past as a monetary centre and proximity to what’s happening in mainland China,” Sieg mentioned.
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He mentioned many worldwide household places of work need to use Hong Kong as a stepping stone to put money into mainland China, whereas rich shoppers from the Higher Bay Space need to diversify their investments by way of Hong Kong.
To seize the rising variety of mainland shoppers, the US financial institution opened its first wealth centre globally in November 2022 within the vacationer hotspot of Tsim Sha Tsui. The centre in K11 Atelier opened simply earlier than the town reopened its borders after the Covid-19 pandemic.
In consequence, the financial institution reported a 61 per cent uptick within the variety of new worldwide private banking clients in contrast with pre-Covid ranges in 2019.
“We see Hong Kong and Singapore as key centres for the way forward for wealth in Asia,” Sieg mentioned. “They’ll each achieve success markets as the 2 cities act as a bridge between China and the broader markets of Southeast Asia and the world.”
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