EXPERT INSIGHTS

In recent years, pan-asset management has become a hot topic in society. Trust companies, fund management companies, insurance asset management companies, securities companies, futures companies, and private equity funds have all carried out asset management operations in different ways under different regulatory frameworks. The advent of the pan-asset management era has enabled the special asset management plans and insurance funds of the fund company to be linkedto trust products, which has enabled the trust industry to flourish, and thescale of asset management to grow. On the other hand, most of the trusts under asset management are business trusts, which allows...

EXPERT INSIGHTS 2020

Founded on two legal relationships, i.e insurance and trust, insurance benefit trust means that the insured, as the trustor, establishes a property right trust by taking his right to insurance claim as the trust property and delivers trust property by designating a trust company as the insurance beneficiary or changing the designation. The special account for trust is used as the account for return on insurance benefits. When the conditions for the payment of insurance benefits are met, the trust company as the insurance beneficiary shall file an application on collecting insurance benefits with the insurance company, administer the application...

EXPERT INSIGHTS 2020

Within the trend of wealthy Chinese’s globalized asset allocation, stock rights have become a main carrier of wealth. Chinese entrepreneurs constructing complex corporate structures overseas (especially in offshore locations) is a long-established trend, but the difference between Chinese and foreign family laws and the complexity of the jurisdiction and application of laws in family disputes may result in entrepreneurs being hit hard by family-related risks, in spite of having attempted to create impregnable business empires. Therefore, isolating family assets from family disputes, guaranteeing the continuous inheritance of family assets, and avoiding family affairs-related risks has become extraordinarily important.   I. The...

EXPERT INSIGHTS 2020

According to the data included in the World Investment Report 2017 and the 2016 Statistical Bulletin of China's Outward Foreign Direct Investment, the amounts of outbound direct investment (ODI) and foreign direct investment (FDI) have amounted to 196.15 billion US dollars and 133.7 billion US dollars respectively, since 2016. In 2015, China’s ODI amount first exceeded its FDI amount, while in 2016, the gap between ODI and FDI became even bigger, while China realized a net capital output under two-way direct investment for two consecutive years. In the context of Chinese enterprises increasing their outbound investment year after year, the ways in which...

EXPERT INSIGHTS 2020

Brief introduction: Huaitao Wong, Lawyer Managing Partner at IBK Financial Group, co-founder of IBKFO, director of Shanghai Thinkoo Law Firm, and member of the Shanghai Bar Association’s Merger, Acquisition and Reorganization Research Committee. With over eight years of experience as a lawyer, Mr. Wang specializes in identity-planning, family wealth protection, management and inheritance, family trusts, private foundations, and legal services related to various other financial products. Mr. Wang currently serves as legal counsel for over one hundred financial institutions at home and abroad, and provides wealthy Chinese families with wealth protection and inheritance services. Limhay, Lawyer Senior researcher at IBKFO...

EXPERT INSIGHTS 2020

The Common Reporting Standard (CRS) is already well-known within financial circles, but only a small number of people can accurately define and apply it. Therefore, before discussing the registration and management of offshore companies within a CRS environment, I shall explain in simple language what CRS means for a customer who plans to register an offshore company. A popular definition of CRS’ impact If more than 50 percent of the revenue of an offshore company comes from dividends and interest, i.e. passive investment income, information about the controller of this offshore company will be exchanged between offshore territories and the...

EXPERT INSIGHTS 2020

“There are a thousand Hamlets in the hearts of a thousand people, and there are a thousand different family offices within a thousand families.” Different families encounter distinctive problems at different stages. They have different areas of focus, so there is no “one-size-fits-all” solution. As with iPhones, they look alike, but each one of them has its own interface and software since the owners have different tastes. As we all know, Apple’s iOS system is popular thanks to its security, stability and user-friendly design. It is said that “a different profession is like a different world”, but in terms of...

EXPERT INSIGHTS 2020

Leon Mao Tolstoy: “Happy Families are all alike; every unhappy family is unhappy in its own way.” What if, as a wealthy person in today’s China, you were introduced to a legal solution which offered benefits, including the provision of a mechanism for controlling your wealth, and more specifically, how it would be dispensed to beneficiaries, years and generations into the future? This solution could be designed to preserve your wealth from external attack from creditors or from division, if there were divorces within your family.  Under this solution, the holding of your private assets would become “opaque” to outsiders, whereby your...

EXPERT INSIGHTS 2020