AS MORE THAN 1,500 RICH PEOPLE POURED IN, THE MONETARY AUTHORITY OF SINGAPORE SUDDENLY WARNED AGAINST PUBLICLY DISCUSSING THE SOURCE OF THEIR MONEY

The Monetary Authority of Singapore warns:

Avoid talking openly about the source of the funds

On April 15, Singapore lawyers and industry groups estimated that there were 1,500 family offices in Singapore at the end of last year. The MAS previously said there were 700 family offices in Singapore at the end of 2021, compared with just a handful in 2018.

Meanwhile, the Financial Times recently revealed that the Monetary Authority of Singapore has privately told institutions such as banks and family offices to avoid discussing the source of the funds, which are thought to have flowed into Singapore in the past year.

We have always believed that the "overheating" of capital inflows into Singapore in the past three years was passive in nature, due to geopolitical tensions, the financial crisis in Europe and the United States, as well as changes in the policy relationship between mainland China and Hong Kong, which triggered a large amount of capital flows into Singapore. As far as we know, funds, including those caused by the Credit Suisse crisis, did not flow to Hong Kong in large quantities, but to Singapore. However, at present, Singapore's local assets available for purchase are poor, more for the purpose of capital havens rather than appreciation, the affordability has been close to the ceiling.

02

The HSBC report:

More than half of the family inheritance preferred family trust

On April 18, HSBC Bank (China) Limited (" HSBC China ") and the Global Family Business Research Center of Tsinghua University's Pudaokou School of Finance announced the core findings of the "Succession Wave and Family Trust Survey" in Beijing. Research shows that Chinese entrepreneurs, who are ushering in the wave of large-scale intergenerational inheritance, not only pay attention to the development of enterprises and human capital continuously, but also pay attention to the transmission of positive values when "handing over sticks", while the second generation of young enterprises are more willing to join the emerging industry on the basis of the previous generation of enterprises, following the needs of The Times.

The survey further noted that more than half (56%) of the entrepreneurs surveyed hope to isolate risk through family trusts, nearly half (44%) believe that a well-designed trust will enable them to start a new business, and nearly 40% (39%) of the entrepreneurs surveyed said that the succession of their business faces various uncertainties. It is also hoped that through the design of family trust, the family offspring can cultivate their personal ability and excellent quality, so that they can have more diversified career choices and independent development paths.

Family Standard Institute: From the perspective of succession of private enterprises over the years, the possibility and probability of successful succession of Chinese family enterprises is relatively low, especially compared with the family enterprises in Japan, South Korea, Taiwan and Hong Kong. The first is the problem of traditional education concept, the second is the weakening of family and family concept, and the last is the succession mechanism. As a result, passing on equity or cash indirectly to the next generation will become mainstream, involving tools and solutions, and perhaps this is where the home-office business will be concentrated in the future.

03

The family office buy-side position

Stick to the original only on its own is not enough ‍ ‍ ‍ ‍ ‍ ‍ ‍ ‍ ‍ ‍ ‍ ‍ ‍ ‍ ‍ ‍ ‍ ‍

At a recent industry forum, Yang Xiang, vice president of XinCaidao, said, "From the previously unpopular concept to the booming development in the last two years, Chinese family offices are currently in a process of alienation, with bad money driving out good money. On the one hand, there is no threshold for home office products to be sold on commission. Some employees of home office are not professional financial planners and rely more on their own resources to make quick money. On the other hand, under the consignment model, the current home-office products are mainly dominated by customers with high returns and low risk preference. The main demand of customers is to create wealth, and the customers who keep the wealth and pass on the wealth are relatively scarce. As a result, the more highly marketed home-office products are, the more they will be pursued by customers.

Home office standard Research Institute: The rapid development of home office industry is not decided by practitioners, but mainly determined by customer demand. However, as a practitioner is able to balance and guide the needs of customers, which is also the positioning of home-run enterprises as buyer institutions and investment institutions. In the long run, as investment returns normalise, clients' expectations of high returns return to rationality. At this time, adhere to the buyer's position of the organization will gain a higher brand identity and reputation.

04

China's wealth has increased ninefold in the last seven years

A single product cannot meet customer needs

China's wealth has increased nine-fold in the past seven years and half of the population is forecast to be middle class by 2050, according to the first China Investor Summit held in Beijing. For active wealth management, in fact, a really good wealth planning is not just one or two products, but more comprehensive allocation schemes, including how to avoid some potential losses or risks. Such advice is what customers need most.

Home Office Standard Research Institute: The concept of asset allocation is consistent with the underlying logic of the comprehensive plan of home office. The difference is that the proportion of long-term demand of home office customers is higher than the demand of short-term income. In the future, the middle class will grow in tandem with the high net worth population. As can be seen from the previous sales model and history of the insurance industry, the whole-plan approach to serve and cultivate home-run customers is more sticky and sustainable than the simple sale of a single product