With an Eye on the Rich’s Growing Wealth, UBS Launches Family Trusts in China
What’s new: UBS (China) Ltd., a subsidiary of Swiss banking giant UBS AG, on Wednesday announced it has launched family trust services for wealthy clients in China, making it the first foreign bank to roll out such offerings on the Chinese mainland.
Family trusts offer rich clients asset management and portfolio design services that aim to help them pass down their families’ wealth.
There is growing demand for family trust services in China, said Zhang Qiong, president at UBS (China). By the end of this year, the mainland’s high-net-worth individuals, which are defined as people with more than 10 million yuan ($1.5 million) in investible assets, are expected to have 96 trillion yuan in such wealth, up from 84 trillion yuan a year earlier, according to estimates (link in Chinese) jointly released by China Merchants Bank Co. Ltd. (600036.SH) and consultancy Bain & Co.
The background: UBS AG is deepening its footprint in China as Beijing has accelerated plans to further open up domestic financial markets. In 2018, the company became the first foreign firm to take control of a securities firm in China after the country scrapped the foreign ownership limit. UBS AG has also recently relocated several bankers to the mainland from Hong Kong, as part of its efforts to expand its businesses in the market.
Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.
Contact reporter Tang Ziyi (firstname.lastname@example.org) and editor Michael Bellart (email@example.com)
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