With an eye on the growing wealth of the rich, UBS launches family trusts in China
What’s up: UBS (China) Ltd., a subsidiary of Swiss banking giant UBS AG, said on Wednesday it had launched family trust services for high net worth clients in China, making it the first foreign bank to roll out such offerings on the Chinese mainland.
Family trusts provide wealthy clients with asset management and portfolio design services aimed at helping them pass on their family’s wealth.
There is a growing demand for family trust services in China, said Zhang Qiong, president of UBS (China). By the end of this year, high net worth individuals on the mainland, who are defined as people with more than 10 million yuan ($ 1.5 million) in assets to invest, are expected to have 96 trillion yuan. of such wealth, against 84 trillion yuan a year earlier, according to estimates (link in Chinese) jointly published by China Merchants Bank Co. Ltd. (600036.SH) and the consultancy firm Bain & Co.
The background: UBS AG strengthens its presence in China as Beijing accelerates plans to further open up domestic financial markets. In 2018, the company became the first foreign company to take control of a securities firm in China after the country removed the foreign ownership limit. UBS AG also recently relocated several bankers to the mainland from Hong Kong, as part of its efforts to expand its business in the market.
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Quick Takes are condensed versions of stories related to China for quick news that you can use. To read the full story in Chinese, click here.
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