EXPERT INSIGHTS

By Hao Wang.  With the advent of the new century, China has further accelerated its pace of economic growth. In this tide, there have emerged a growing number of eminent persons and countless family enterprises. In the second decade of the new century, a staggering amount of family wealth has been accumulated in China, bringing about some new questions, such as how to pass on wealth effectively and how to ensure smooth transition of a family enterprise from one generation to the next generation. During the process of exploring answers to these questions, the trust – an ancient system in...

EXPERT INSIGHTS 2020

By Xu Haibo. As one of the major types of civil trusts, The trust structure is currently at its infancy in China. The development of the family trust will represent the general trend in the foreseeable future. This is primarily due to the robust growth of the economy and the internationalized financial management of wealth Chinese families. Based on its unparalleled system advantages, family trust has played a key role in planning and managing wealth of a whole family. It has gradually become an international practice to plan family relations, corporate governance and intergenerational transfer of various interests through contract...

EXPERT INSIGHTS 2020

Introduction The problems of preservation of wealth and succession planning have attracted increasing attention in China over the past decade, particularly as the first generation entrepreneurs who were enriched and empowered by China’s economic reforms started to age and retire. The use of trust structures appears to be a viable solution, but the concept is, as some would argue, not supported in full by the current legal and regulatory system in China. Setting up offshore trusts, particularly in the Cayman Islands and the British Virgin Islands, has become a popular, though often not well-understood, choice for Chinese HNWIs. This article...

EXPERT INSIGHTS 2020

By Andrew J. Toles.Several years ago, though I had no experience in the mountains, I decided to climb one of America’s tallest peaks. I quickly learned the value of having an experienced guide. A mountain guide helps the climber make hundreds of difficult decisions about training, technique, preparation, gear, weather, route and various judgment calls along the way to the summit. For the newly-rich in mainland China the challenges of becoming a philanthropist are no less daunting than peering up at a mountain for the first time after resolving to conquer it. Emerging philanthropists in China – a population that...

EXPERT INSIGHTS 2020

Lihong Zhou, the General Manager of the Luxembourg branch of Bank of China Limited, commented: "The successful launch of this Schengen bond is a further step towards the internationalization of the Renminbi, and shows the commitment of Bank of China to promote Luxembourg as a leading RMB financial center in Europe. Photo By: Bank Of China By Courtesy of Lowtax.net On May 8, Bank of China, one of the big four state-owned Chinese commercial banks, successfully launched the offshore renminbi (RMB) 'Schengen bond' the first of its kind to be issued by a company from the Chinese Mainland and listed...

EXPERT INSIGHTS 2020

By Brandon Tang British Virgin Islands (BVI) has evolved into a well-deserved international financial center which has been the most popular and important one for the global financial regime over the decades thanks to its evident advantages in terms of stability, transparency, innovation, improvement and professionalism. First of all, BVI owns the strongest supervisory system recognized by many international organizations, an innovative and sound legal system which has been implemented afterwards, high-quality service providers and professionals, and a regulatory system that effectively supervises financial services and industrial activities.As a result, a large number of international clients are attracted to choose...

EXPERT INSIGHTS 2020

By Dan Mitchell & Brian Garst High-growth nations have learned the importance of good tax policy when it comes to enhancing prosperity and living standards. Low marginal tax rates reward productive behavior by encouraging people to work more, save more, and invest more. Bad tax policy, on the other hand, can significantly stunt economic development.  More specifically, excessive taxes on capital such as capital gains, dividends, interest and inheritances taxes re particularly destructive because they inhibit the formation of capital, which all economic theories agree is necessary for economic growth.With economic growth comes advancement in human prosperity. Even slight differences...

EXPERT INSIGHTS 2020

By Michael Liu Introduction:The summer of 2013 is unusually hot. Likewise, the engine of the global economy is losing momentum because it's too hot. Liang Qichao said: "Poverty demands change, change carries development and permanence follows development."  The words of the Chinese reformist are still enlightening today. Has the world economy really stalled? Not really. It is just experiencing a major restructuring. We need the courage to face the change, the patience for new opportunities and the spirit to rebuild the world. hina is the youngest nation rather than an old one. On one hand, the pessimistic sentiment toward China is...

EXPERT INSIGHTS 2020