CHINA: An Introduction to Private Wealth Law (PRC Firms)

2024 Wealth Management Market Insights: Securing the Bottom Line, Transforming Structures, and Fueling Resilient Growth

2024年财富管理市场的最新实践——底线安全、结构重塑与韧性生长 

China’s high-net-worth individuals and wealthy families (collectively referred to as the “wealthy group”) have set enduring trends in wealth management:

• shifting focus from local to global asset allocation;
• demanding comprehensive solutions across multiple life scenarios based on key scenarios;
• a growing attention for the equilibrium among family, corporate, and societal values;
• exploring and leveraging diverse family office functions and benefits; and
• ongoing innovation and improvements in wealth management instruments.

Notably, since 2024, several prominent shifts require special attention.

中国高净值人士、财富家族（合称为“财富人群”）的财富管理实践已经确立了一些长期趋势：

• 从本土视角的管理向全球视野的配置持续转变；
• 关键场景出发的多场景整体解决方案成为核心诉求；
• 家族价值、企业价值与社会价值的平衡日受重视；
• 多类型家族办公室功能与价值的发现与运用成为热点；
• 财富管理工具的创新与完善将会长期持续。

当然，自2024年以来，也有一些特别需要提及的趋势性变化，应当予以高度重视

Heightened emphasis on ownership structures among the wealthy group

财富人群对所有权结构的关注持续加强

Based on the functional values of ownership management, flow direction management, flow volume management, and security management offered by structural tools, there is a widespread consensus among the wealthy group that these structural tools could more effectively facilitate wealth management objectives related to protection, administration, and inheritance.

Previously, the focus of the wealthy group was primarily on the ownership structure of operational assets. However, with the ongoing rise of non-operational assets, predominantly financial in nature, greater attention is now directed towards their ownership structures. This shift underscores the widespread adoption of wealth management vehicles, such as family trusts, among the wealthy group.

With a deepening understanding of the functional value of family trusts, the ongoing optimisation and restructuring of both domestic and overseas established family trusts have become a focal point among the wealthy group. This encompasses considerations regarding compliance with regulations and introspections on past practices, as well as thoughtful exploration and anticipation for effectively achieving the intended purposes of family trusts.

The wealthy group has come to recognise the pivotal role and value of family trusts as a top-level structure, marking a new phase in the application of family trusts. Meanwhile, it has become a consensus to broaden the application scenarios of family trusts out of specific objectives. Establishing various types of family trusts both domestically and abroad, tailored to different goals, has grown into a prevalent practice among families.

基于结构性工具归属管理、流向管理、流量管理及安全管理的功能价值，结构性工具更能有效实现保护、管理与传承的财富管理目标，这已经在财富人群中形成普遍共识。

此前更加关注经营性资产的所有权结构的变化，当下随着以金融资产为主的非经营性资产的持续增加，开始更为重视非经营性资产的所有权结构，这就决定了家族信托等财富管理工具在财富管理人群的广泛运用。

随着对家族信托功能价值的深入了解，财富人群对于此前设立的境内外家族信托的优化与重构成为了一个持续热点。其中既有对于家族信托合规方面的考量与反省，也有对家族信托目的有效实现的思考与期待。

财富人群显然已经逐步意识到家族信托作为顶层结构的功能和价值，家族信托的运用已经进入到了一个新的阶段。与此同时，从目的出发打开家族信托的应用场景已经成为一个普遍共识，家族基于不同目的在境内外设立不同类型的家族信托已经是很普遍的现象。

Ongoing transformation of wealth management service models

财富管理服务模式的持续改变

In tandem with the wealthy group’s sustained focus on holistic wealth management solutions and the ongoing shift among institutions toward a “buyer’s investment adviser” mindset, the organisational and service models of wealth management institutions are continually evolving.

Across wealth management institutions, internal departments and functions are undergoing realignment to better adapt to and fulfill evolving client needs. This is a universal phenomenon. Most notably, the prevalent establishment and operation of family office departments within wealth management institutions have transformed the concept of family office services into a tangible service model and organisational structure, a shift with profound implications.

Certainly, complementing varying service capabilities and better aligning with the wealth management demands of the wealthy group, the integration of different types of wealth management institutions into cooperative ecosystems has gained unprecedented attention. Wealth management is no longer merely a competition among institutions but a contest between ecosystems.

Of note, accompanying the transformation in wealth management service models, operational modes are also undergoing profound changes. All types of ecosystems and institutions are actively engaged in exploratory efforts and trials, indicating a prolonged process of adaptation and evolution.

随着财富人群对于财富管理整体解决方案的持续关注，伴随着财富管理机构“买方投顾”理念的持续转变，财富管理机构的组织模式与服务模式持续发生着变化。

财富管理机构内部的职能部门与功能在重新调整，进而更好地适应和满足客户诉求的变化，这一变化是普遍的。最为突出的是，财富管理机构家族办公室部门的普遍设立和实际运营，彻底将家族办公室服务从一种服务理念，转化为了一种服务模式和服务组织，这个影响是深远的。

当然，基于不同服务能力的补充，为了更好的匹配财富人群的财富管理诉求，不同类型的财富管理机构的生态融合受到了前所未有的重视，财富管理已经不再是机构之间的竞争，更是生态之间的竞争。值得注意的是，伴随着财富管理服务模式的改变，相应的作业模式也会发生深刻的改变，各类生态及各类机构均在进行相应的探索和尝试，这将是一个长期的过程。

Maturation and establishment of long-term wealth management strategies

长期财富管理路径的成熟与确立

Securing the fruits of success through baseline safety measures, achieving value equilibrium grounded in comprehensive compliance, and facilitating systemic inheritance through sustained growth – these constitute the three core pathways for the wealthy group in contemporary wealth management.

Amid growing unease over increased uncertainty, the wealthy group has become increasingly clear in their requirement for bottom-line security. This objective has evolved from simple safeguarding measures to a systematic approach aimed at preserving the wealth achievements.

The wealthy group not only prioritises the security value of full compliance but also recognises the fundamental security value in balancing family, corporate, and social values. This realisation would fundamentally alter their wealth management behaviour patterns.

Ensuring the sustained growth and resilience of family wealth and enterprises paves the way for a systematic inheritance of wealth, leadership succession, and cultural continuity within families, harmoniously unifying development with succession.

The maturation and establishment of these wealth management pathways will significantly influence the overarching approach to wealth management among the wealthy group, posing new demands on wealth management institutions, technologies, and tools.

从底线安全出发，保障胜利果实；从全面合规出发，实现价值平衡；从持续发展出发，实现系统传承。这是当下财富人群实现财富管理的三个核心路径。

基于对不确定性加强的不安，财富人群对于底线安全的要求日益明确，底线安全的目标已经从简单的保障支持目标，转化为对于此前财富创造成果的系统保障。

财富人群不仅关注到全面合规的安全价值，进而也意识到家族价值、企业价值与社会价值平衡的根本安全价值，这将深刻改变财富人群的财富管理行为模式。

确保家族财富及家族企业的持续发展与韧性生长，进而在持续发展中实现家族的财富承继、权杖交接及文化相续的系统传承，实现发展与传承的统一与协同。

上述财富管理路径的成熟与确立，将会深刻影响财富人群关于财富管理的总体思路，向财富管理机构、财富管理技术与财富管理工具提出了新的要求。

Four Key Consensuses and Practices in Contemporary Wealth Management四个当下最重要的财富管理共识与实践Optimisation and restructuring of family enterprise ownership structures

家族企业所有权结构的优化与重构

Prompted by revisions to the Company Law, along with the heightened focus of the wealthy on ownership structures and the practical demands for comprehensive compliance and risk management, a large number of family enterprises are currently undergoing optimisation and restructuring of their ownership frameworks.

In-depth exploration and experimentation with equity-based family trusts, the widespread adoption of family-holding companies and household-controlled companies, the conglomeratisation of private enterprises, and the establishment of cross-border ownership structures will be pivotal avenues for optimising and restructuring the ownership structures of family businesses.

基于公司法的修改，更基于财富人群对于所有权结构关注的持续加强，以及全面合规及风险管理的现实诉求，大量家族企业的所有权结构正在优化与重构之中。

股权类家族信托的深度探索与尝试，家族控股公司及家庭控股公司的广泛使用，民营企业的集团化构建，跨境所有权结构的构建，将是家族企业所有权结构优化与重构的重要路径。

Construction of structural security assurance platforms

结构性安全保障平台的构建

With a focus on securing the fruits of their success from a baseline security perspective, the wealthy group is increasingly emphasising the establishment of larger-scale security platforms to achieve systematic wealth protection. Structural security assurance platforms primarily serve to uphold the value of “preservation.”

Family trusts emerge as the preferred instrument for constructing such structural security assurance platforms. As the scale, assets, and objectives evolve, the wealthy group will demand higher standards in family trust governance, focusing not only on achieving trust objectives but also increasingly emphasising trust compliance.

从底线安全出发、保障胜利果实，财富人群越来越重视逐步构建规模更大的保障安全平台，以实现系统保障的财富管理目标。结构性安全保障平台更多实现的是“守”的价值。

结构性的安全保障平台优选构建工具一定是家族信托，随着规模、资产及目标的改变，财富人群对于家族信托治理将会提出更高的要求，不仅关注信托目标的实现，对于信托合规性的关注也越来越高。

Construction of sustainable development platforms for structural growth

结构性持续发展平台的构建

Against the backdrop of divesting from traditional sectors, consolidating diverse assets, fostering innovation and entrepreneurship, and accommodating diverse investment needs, constructing structural platforms for sustained growth should integrate the multifaceted values of preservation, management, and succession held by the wealthy group. Such platforms primarily serve to advance the value of “expansion.”

Utilising family trusts to construct structural platforms for sustained growth, thereby forming a pinnacle structure for ongoing development, constitutes a pressing need for many of the affluent. Implementing this strategy through establishing family trusts offshore poses no significant obstacles.

If structured domestically using family trusts, the setup inevitably entails the trusteeship and operation of trusts with diverse asset classes, necessitating alignment with compliance requirements for domestic trustees. This involves institutional trustees transitioning from commercial trust compliance logic to civil trust compliance logic, alongside enhancing their compliance capabilities.

伴随着传统板块的退出、各类资产的归集、创新创业的发展、多元投资的需求等背景，结构性持续发展平台的构建应当融合财富人群关于保护、管理与传承的多元价值。结构性持续发展平台更多实现的是“攻”的价值。

以家族信托作构建结构性持续发展平台，形成持续发展的顶层结构，这是众多财富人群的现实诉求。这一诉求在境外以设立家族信托的模式实现并无任何障碍。

如果以家族信托的模式在境内构建，就必然会涉及到多元资产类型信托的受托与运营，如何与境内受托人的合规要求相匹配。这涉及到机构受托人从商业信托合规逻辑向民事信托合规逻辑的转变与合规能力的提升。

Systematic planning and implementation of family (enterprise) philanthropic endeavors

家族（企业）慈善事业的系统规划与实践

The wealthy group is increasingly recognising the importance and necessity of balancing family, corporate, and social values. Their awareness and attention to family philanthropy are unprecedented, making it a focal point in wealth management.

On 13 June 2024, philanthropic insurance, jointly promoted by multiple domestic insurance institutions, foundations, and legal service providers, officially launched in China, thereby adding another structured tool for charitable endeavors within the country. Evidently, the driving forces behind the advancement of philanthropy are multifaceted.

Under the impetus of these varied forces, the wealthy group are increasingly focusing on the top-level design of family philanthropy, initiating attempts to plan and implement family (enterprise) philanthropy across multiple tiers, including charity policies, strategies, organisations, governance, project inception and management, etc.

In summary, the five foundational scenarios concerning baseline security, comprehensive compliance, value equilibrium, sustained development, and systematic inheritance, as prioritised by the wealthy group, are firmly established and are unlikely to change over an extended period post-2024. These constitute the fundamental trends in wealth management.

财富人群逐步认识到家族价值、企业价值与社会价值平衡的重要性与必要性，财富人群对于家族慈善的认知与关注是前所未有的，家族慈善成为了财富管理的热点。

境内多个保险金融机构、基金会及法律服务机构共同推动的慈善保险于2024年6月13日正式落地，自此境内增加了一个结构化的慈善工具。显然，推动慈善事业发展的力量是多元的。

在众多力量的推动下，财富人群对于家族慈善的顶层结构设计日趋关注，开始尝试从慈善政策、慈善战略、慈善组织、组织治理、项目选创及项目管理等多个层次对家族（企业）慈善进行规划与实践。

总体来看，财富人群关于底线安全、全面合规、价值平衡、持续发展及系统传承等五个基础场景是确定的，在2024及以后相当长的时间内将不会改变，这才是财富管理的基本趋势。