CHINA

On the whole, 2018 was the investment migration industry’s best year on record in several respects; never have so many individuals invested so much in so many residence and citizenship by investment (RCBI) programs. An ever swelling number of citizenship and golden visa programs - with price points running the gamut from $30,000 to £2 million - are bringing the market into the arena of the mass affluent. Investing in a residence permit or a passport is quickly becoming ordinary and unremarkable, a matter that’s attracted the attention of a long list of small economies now realizing the untapped economic...

IMMIGRATION BY INVESTMENT REPORTS 2019

China is considering tax breaks to attract more global funds to register in the country and reverse swelling outflows to international tax havens, people with knowledge of the matter said. The Ministry of Finance has enlisted a global accounting firm to conduct due diligence ahead of a potential feasibility study on a capital gains tax exemption, the people said, asking not to be identified discussing confidential information. The deliberations are at a preliminary stage, and there are regulatory hurdles that would need to be cleared first. Attracting international funds is a key part of President Xi Jinping’s push to build...

FUNDS & FUNDS SERVICES NEWS 2019

Four Chinese tycoons transferred more than $17 billion of their wealth into family trusts late last year, underscoring how the rich are scrambling to protect their fortunes from the nation’s newly toughened tax regime. The latest example came from billionaire Sun Hongbin, chairman of real-estate developer Sunac China Holdings Ltd., who disclosed in a filing in Hong Kong on Jan. 12 that he shifted most of his stake in the company to South Dakota Trust Co. LLC on Dec. 31. Longfor Group Holdings Ltd. Chairwoman Wu Yajun, one of China’s richest women, made a similar move in recent weeks, as did the wealthy...

CORPORATE & FIDUCIARY NEWS 2019

As the most important financial center and free port in Asia, Hong Kong attracts investors from all over the world and accordingly creates a currency transaction environment for the free exchange of currencies among different countries. Due to such reasons, many customers with demand for foreign exchange settlement go to Hong Kong to incorporate companies and open bank accounts. Meanwhile, well-developed financial industry and insurance industry in Hong Kong also attract a great number of customers from mainland China to purchase insurance in Hong Kong. Without a Hong Kong bank account, no insurance can be purchased in Hong Kong. However, just like bank accounts in...

CORPORATE & FIDUCIARY NEWS 2019

While the majority of the world’s working class puts their savings into traditional bank accounts, some seek to diversity their portfolios, turning toward alternative banking methods to both take advantage of tax abatements, deferments and other means of saving as much as possible over one’s lifespan so he/she can enjoy retirement. These types of alternatives often include opening an individual retirement account (IRA), purchasing United States treasury securities — ranging from 30 days to 52 weeks for treasury bills, two years to 10 years for treasury notes, and 30 years for treasury bonds — high yield bonds, real estate investment...

CORPORATE & FIDUCIARY NEWS 2019

The diverse needs of wealthy Asian Families as they consider and then execute legacy and succession planning are fraught with many emotional, family-specific and also technical considerations. A panel of experts assembled by Hubbis in Hong Kong debated the whys and wherefores and how insurance solutions can play their part. Executive Summary The new era of transparency and compliance is here to stay. The days of hiding assets in some esoteric structure in an exotic location and hoping no one will find out are well and truly over. Asia’s high-net-worth individuals (HNWIs) and their families must be made aware that...

CORPORATE & FIDUCIARY NEWS 2019

China’s plan to cut taxes in 2019 for the masses has the nation’s super-rich running for cover on concern the government will make up the shortfall by going after the wealthy. Changes to the tax regime as of Jan. 1 mean authorities will be paying closer attention to assets and investment holdings. In a nation where personal wealth is estimated to have climbed to a record $24 trillion in 2018 -- $1 trillion of which is held abroad -- that potentially offers rich pickings. Anxiety over how the new rules will be enforced has already triggered a flood of Chinese clients seeking...

CORPORATE & FIDUCIARY NEWS 2019

According to several offshore trust service providers, one of the important reasons that an increasing number of rich people from mainland China plan to set up offshore family trust funds is that they are afraid of the increasing investment risks brought by the drastic fluctuation of global financial market to their family wealth at present. The latest statistical data of HSBC show that in the past year, only 16 of the 450 hedge funds tracked by HSBC achieved positive profits, accounting for less than 4%. Among others, some hedge funds designed to create excess return for rich families all over...

CORPORATE & FIDUCIARY NEWS 2019