Citi China Exits UnionPay as Consumer Business Winds Down

Citi's Chinese unit has exited China UnionPay as it winds down its consumer business. The move follows a 2023 agreement to sell its onshore consumer wealth portfolio to HSBC. Citi is focusing on corporate and institutional clients, and domestic and overseas payment and collection services for these customers will not be affected. The bank's consumer wealth portfolio in China was valued at around $3.6 billion.

Citigroup Inc. has officially exited China UnionPay, the country's primary payment network, as it continues to wind down its consumer business in China. This move comes on the heels of Citigroup's 2023 agreement to sell its onshore consumer wealth portfolio to HSBC Holdings Plc. The bank's consumer wealth portfolio in China was valued at around $3.6 billion.

Citigroup's withdrawal from China UnionPay follows its 2021 announcement of strategic retreats from Asia and Europe. The bank has been focusing on corporate and institutional clients, and domestic and overseas payment and collection services for these customers will not be affected. According to a Bloomberg News report, China UnionPay has approved the exit [1].

Citigroup's CEO Jane Fraser has been emphasizing the bank's efforts to reduce costs and streamline operations. In June, the bank announced that it would lay off 3,500 technology workers at its China Citi Solution Centers in Shanghai and Dalian by the end of the fourth quarter, with some roles being shifted elsewhere [3].

Despite the exit from China UnionPay, Citigroup continues to serve corporate and institutional clients in China, meeting their cross-border banking needs. The bank's consumer business in China has been a significant part of its operations, but the strategic shift towards corporate clients reflects Citigroup's broader focus on core competencies and operational efficiency.

In conclusion, Citigroup's exit from China UnionPay is a strategic move aimed at streamlining its operations and focusing on its core strengths. The bank's continued service to corporate clients in China indicates that its presence in the region will remain significant, albeit with a different operational structure.

References:
[1] https://www.bloomberg.com/news/articles/2025-09-05/citi-exits-unionpay-network-in-china-after-retail-bank-closure
[2] https://www.ainvest.com/news/hsbc-share-buyback-strategic-move-signal-investors-2509/
[3] https://stocktwits.com/news-articles/markets/equity/citi-pulls-out-of-union-pay-as-retail-exit-from-china-nears-completion/chwI5nIRdp0