(Yicai) Oct. 9 -- HSBC Holdings has agreed to acquire Citigroup’s consumer wealth business in China, as the US financial behemoth takes another step back from retail banking in Asia.

HSBC Bank China is set to complete the deal for the business, which has assets and deposits of about USD3.6 billion, in the first half of next year, Citigroup announced today, without disclosing the terms of the deal.

The New York-based financial giant said in December that it would close its consumer banking business in the Chinese mainland after selling similar operations in eight markets, including Australia and India. It plans to do the same in Indonesia, South Korea, and Russia.

“This transaction serves the interest of our clients, colleagues, and all parties involved,” said Christine Lam, chief executive officer of Citi China. “We look forward to continuing to support our institutional clients in China.”

HSBC China said in a statement on WeChat that the assets and staff will be integrated into its wealth management and retail banking business. China’s consumer wealth sector has broad development prospects, the firm said, adding that the deal will further solidify HSBC's lead in the area over other foreign banks.

The acquisition should increase the scale of HSBC China's wealth management business and provide new momentum for further growth, according to Mark Wang, president and CEO.

London-based HSBC is the mainland's biggest foreign lender as its private banking services encompass six cities. The firm's insurance brokerage was the mainland’s first wealth manager, with licenses for brokering and fund sales. With more than 1,400 private wealth planners, it aims to hire 3,000 more.

Editors: Zhang Yushuo, Emmi Laine