HSBC Holdings PLC
The deal will also include attaining "a few hundred" of Citi's China-based employees.
The deal's financial details were not immediately known and will be announced as soon as next month, Reuters said.
Citigroup's China consumer wealth management business manages over $3 billion in assets and will likely expand HSBC's presence in China's $3.94 trillion fund management market.
Earlier In May, HSBC reportedly headed to buy out its China fund management joint venture, HSBC Jintrust Fund Management, in which it owns a 49% stake.
On the other hand, Citigroup is also reportedly aiming to sell some of its portfolios for winding down its China retail banking business and exit consumer franchises across Asia, Europe, the Middle East, Africa, and Mexico.
Last month, Citigroup closed the sale and full migration of its Taiwan consumer businesses to DBS Group Holdings Ltd
Price Action: HSBC shares are trading higher by 0.64% at $39.40, while Citigroup shares are up 0.37% at $40.62 premarket on the last check Thursday.