Chinese rich families embrace family office services
The total wealth of China’s rich families has grown against the market in 2020, and over 70 percent of respondents are considering using family office services, according to a white paper released by Ping An Bank and Forbes China.
The white paper was based on nearly 1,000 questionnaires of high-net-worth individuals and in-depth interviews with more than 100 customers, including dozens of entrepreneurs on the Forbes China Rich List. Over half of the respondents have total assets of over 1 billion yuan (US$153 million).
Despite the COVID-19 pandemic, the total wealth of those on the Forbes China Rich List soared to 14.1 trillion yuan from 9.1 trillion yuan a year ago, the report noted.
Over 20 percent of respondents said they have used family office services, with the main reason for not using them a lack of understanding, followed by concerns over security and privacy.
At the same time, around 64 percent of the surveyed are interested in learning more about family office services and over 70 percent indicated they would consider using family office services in the next one to five years.
The white paper shows that the integrated family office service provided by commercial banks is the most favored form for entrepreneurs, thanks to their stronger business integration ability, better credit base with customers and more influential brands.
That was followed by a single family office with family members hiring professionals or outsourcing services.
Professional and reliable wealth inheritance services, privacy protection, and comprehensive financial strengths are the top three measurement standards for the rich group to select corporation institutions, the study added.
Seeking wealth security as well as maintaining and increasing wealth value are the core reasons for the superrich to establish or join family offices, followed by planning and training the next generation of families.
Professional asset allocation, operational services and risk control are the services that participants most want to be provided, followed by special services on law, taxation and accounting.