HSBC, Europe’s largest lender, is set to acquire Citigroup’s China consumer wealth management business, which manages more than $3 billion in assets, Reuters reported. The deal, which could be announced as soon as next month, will also see HSBC taking over hundreds of Citi’s China-based staff.

The acquisition is part of HSBC’s strategy to expand in China, one of its key markets, as it exits less profitable geographies to focus on Asia. HSBC’s chairman Mark Tucker said that British businesses historically had an “ice-breaking” spirit that would help overcome challenges and geopolitical tensions with China.

HSBC already runs wealth management and private banking services in China, and recently scored a first of its kind fund distribution qualification granted to a foreign firm, giving it new opportunities in the country’s $3.94 trillion fund market.

Citi’s China wealth management operations mainly serve rich clients with deposit, fund and structured product offerings. Its private banking services, catering to high net worth Chinese clients from outside of China, remain intact. Citi is also in the process of applying to set up a China securities brokerage unit.

Citi said in December it was looking to sell some of its portfolios as it wound down its China retail banking business, part of a strategy to withdraw from consumer franchises in 14 markets. In Asia, Citi is in the process of closing its South Korea operation and transferring its Indonesian business to UOB Group. It has already completed the sale and migration of its Taiwan consumer businesses.