HSBC reportedly set to acquire Citi's China wealth business

The news: London-based financial services and banking giant HSBC will buy up Citigroup's China consumer wealth management business in a deal that could be announced as soon as next month, Reuters reports.

The numbers: The acquisition target manages more than USD3 billion ($4.7 billion) in assets, mostly mass affluent clients in the world's second largest economy. China's fund management market is estimated to be worth USD3.8 trillion. HSBC is Europe's largest bank by total assets.

The context: HSBC has been expanding its presence in China and Asia more broadly, following partial or total exits from less profitable jurisdictions such as Greece, Russia, France and Canada in recent years. Reuters also reports the banking giant has agreed to buy out its joint venture partner Shanxi Trust in another China fund management business with roughly USD7.7 billion in funds under management.