CITIC releases its family trust brand
- By Guo Xiaohong
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E-mail China.org.cn, January 7, 2016
CITIC Trust Co, a unit of China's biggest state-owned investment company CITIC Group, released its family trust brand in Beijing yesterday.
CITIC Trust leads its counterparts in China in developing new trust products in the country’s transition to an innovation-driven economy. It began the family trust business as of 2012 to echo the increasing market need of wealth management from the swelling population of China’s super rich, said Cheng Hong, marketing director of the CITIC Trust.
Cheng revealed that CITIC Trust now provides customized family trust for clients with assets of 30 million yuan and standard family trust for clients with assets of 6 million yuan. The company has offered the service to more than 200 clients so far, said Cheng.
According to the 4th China Private Wealth Report, developed by Bain & Company and China Merchants Bank, the population of high net worth individuals (those who have individual investable assets in excess of 10 million yuan, or approximately US$1.6 million) in China exceeded 1 million in 2014, twice that of 2010.
This makes family assets management more appealing as ultra-rich Chinese plan to keep their fortunes safe and perpetual for future generations and to avoid the negative effect of family conflicts, said Wu Zheng, a CITIC Trust manager.
There's an old saying in China, "No riches pass after three generations." It means that a family's prosperity usually falters after three generations. As the rich become richer and their population grows fast, more demands of family assets management will be on the way, said Wu Zheng.
The undeveloped legal and tax system is yet to be improved to facilitate the family trust industry in the country, said Wu.
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