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Dubai Is Becoming A New Magnet for Global Affluent Migrants
The Henley Private Wealth Migration Report 2024, released today by international investment migration advisory firm Henley&Partners, shows that the United Arab Emirates (UAE) continues to take first place as the world’s leading wealth magnet for high-net-worth-individuals (HNWIs), with a record-breaking 6,700 affluent migrants the by the end of 2024. There are a variety of factors driving Dubai’s attraction for global immigrants, such as high-quality real estates, investor-friendly framework, large-scale industrial advertisement, the United Arab Emirates Golden Residency Program or the UAE Golden Visa. In particular, there are five major reasons as follows: 1. Strategic and economic resilience As part of forward-looking economic initiatives, like Abu Dhabi Economic Vision 2030, Dubai Economic Agenda “D33”, the UAE is actively strengthening its position as a leading global financial hub by growing and diversifying its economy. 2. Leveraging its geographical advantages as a trade hub As a major business and commercial hub between the East and the West, the UAE serves as crucial links to trade and investment worldwide by the Port of Jebel Ali and its two national airlines, particularly in collaboration with key markets such as India. 3. Favourable tax and residency policies Tax-free policies and golden visa schemes offer financial freedom and long-term residency for investors and top talents, thus attracting capital and talents around the globe. 4. Family office hub As a new global focus for family wealth management, Dubai becomes a magnet for global giants by actively developing its family office business. 5. Prosperous real estate market Dubai, well-known for its luxury properties and high-end projects, attracts a large number of investors around the globe. Its real estate market demonstrates strong growth potential as the transactions appear to be on a continuous upward trend. In conclusion, Dubai emerges as a preferred destination for global HNWIs due to its resilient economy, tax incentives, thriving property market and high quality of life. Notably, HKFA (Hong Kong Fiduciary Association Limited) has already established a presence in Dubai by offering HNWI clients in the Middle East and the rest of the world, professional Trust and financial advisory services to Middle East and global HNWI clients, helping them seize the investment opportunities in Dubai and realise their wealth appreciation. We welcome your inquiries.
KPMG: Hong Kong Reclaims Position Among Top Five Global IPO Venues
On October 3, 2024, according to KPMG’s latest Chinese Mainland and Hong Kong IPO Markets 2024 Q3 review, Hong Kong has regained its position among the top five global IPO venues. Hong Kong IPO activity displayed signs of recovery in the third quarter of 2024, with 45 listings and a total fundraising of HK$55.6 billion recorded so far in 2024. Both the amount of fundraising and the number of listings spiked 123% and 2% respectively compared to the same period last year. It is worth noting that the consumer markets sector led in terms of funds raised, attributable to the listing of a large Chinese home appliance maker, which alone attracted HK$ 35.7 billion, as Hong Kong’s largest IPO in the last three years. Hong Kong has regained its position among the top five global IPO venues in funds raised. As of the third quarter of 2024, global IPO markets raised a total of US$ 83.3 billion through 851 deals, reflecting declines of 21% in funds raised and 15% in the number of deals compared to the same period last year. Among them, the two stock exchanges in the US continued to lead the world in terms of fundraising, accounting for one-third of the total IPO funds raised worldwide. The National Stock Exchange of India ranked third, while the Hong Kong Stock Exchange and the Shanghai Stock Exchange ranked fourth and fifth, respectively. The KPMG report reflects investors’ renewed confidence in the Hong Kong IPO market, demonstrating that Hong Kong has retained its global financial and trading centre, which is still favourable for doing business.
What Does Donald Trump’s Election Win Mean for the International Capital Market?
Specifically, the U.S. presidential election has triggered more volatility in U.S. stocks, U.S. bonds, gold, and commodities. U. S. Treasury Bonds Due to the return of inflation and mounting U.S. budget deficit, as much as concerns about yields have grown significantly since October. Moreover, the yields continue to soar as Trump wins U.S. presidency election. Now, republican clean sweep will make it significantly easier to implement its fiscal policy in the U.S., which could further increase the yields. Longer-term trends will still base on economic fundamentals, while the U.S. government’s budget deficit will significantly affect the term spread. Currently, there is a widespread consensus that the U.S. Treasury yield curve may steepen. U.S. Stocks When short-term investor sentiment is high, tax cuts and easing regulatory have a positive effect on corporations, the market appears to be favourable to small-and mid-cap stocks, financials and value, etc. It’s worth noting that a continued rise in long-term U.S. Treasury yields may put higher pressure on U.S. stock market valuations. In particular, when inflation or even stagflation makes a comeback, both stocks and bonds may decline simultaneously. Gold Trump’s “America First” policy may escalate trade frictions, while his fiscal plan will further raise the U.S. fiscal deficit. From a long-term perspective, as a natural currency, gold is considered as a reliable investment over the long term. However, in some cases, overpricing gold prices is partly a result of some investors taking profits in the short term. Commodities Generally speaking, the most common commodities are energy sources like crude oil, etc. Trump’ preference for traditional energy sources may further increase the U.S. energy supply. From the supply and demand relationship, as there is no shortage of crude oil, the increase in U.S. production capacity may not necessarily be conducive to favourable oil prices. Virtual Assets Trump’s support for cryptocurrencies could push several digital assets such as Bitcoin to a surge in price. And he advocated for a strategic bitcoin reserve, positively influencing the cryptocurrency market. In fact, the price of Bitcoin hit an all-time record sparked by Trump’s election win rolls on.
Five Ways Family Trusts Help Entrepreneurs Secure Wealth Inheritance
1. Establishing a “firewall” between a family and an enterprise to ensure the better standard of living for families As a kind of risk isolation tool, Family Trust can provide a protective barrier that can safeguard family wealth from various risks. When setting up a Trust in stable operation of business, family financial assets can be placed in the Trust, which can be independent of enterprises’ own assets, so as to effectively prevent from family assets from risks of enforcement due to their debt problems. 2. Avoid equity dispersion caused by marriage, inheritance and debt risks Without setting up a Family Trust, equity is prone to be divided due to divorce, death or debt risks, which may lead to the decentralization or even loss of corporate control, thus resulting in chaos and turbulence in business operations. Upon placing it into a Family Trust, equity can be transferred into the name of trustee, and then SPV (Special Purpose Vehicle) is structured effectively to ensure smooth operations and decision-making rights of enterprise leaders, so as to secure sustainability of family businesses and inheritance across generations. 3. Cross-border asset distribution and tax planning When a Family Trust is set up during the grantor’s lifetime, the Trust property doesn’t belong to the grantor’s personal property due to its judicial independence. Upon the death of the grantor, property held in the Trust is usually not subject to the estate probate process and therefore is not subject to estate tax. Frederick Christ Trump, Donald Trump’s father, leveraged this features of Trust to avoid nearly USD500 million in estate taxes by setting up a GRAT Trust (Grantor-Retained Annuity Trust). 4. Tax planning on distribution of dividends and bonus share According to the relevant laws of Chinese Mainland, when a limited partnership distributes dividends to a Family Trust. As a kind of legal structure, Family Trust does not belong to enterprise legal entity nor other organisations. Therefore, the dividends obtained from the limited partnership enterprise are not required to be declared nor subject to income tax. When the Family Trust distributes benefits to the beneficiaries, until now, the Chinese Mainland has not issued specific tax regulations on the incomes from Trusts. Currently, they are not subject to taxation, thereby achieving tax efficiency. 5. Withoutsuitable successors, long-term planning for family wealth is much needed If entrepreneurs settle these financial assets into a Family Trust, these assets can not only ensure that family members maintain a decent life, but also can embed a ‘milestone’ behavioural guidance mechanism in the Trust benefit arrangements, while offering necessary financial support in terms of school enrolment, graduation, employment, marriage, childbearing, and startup. This approach can motivate and inspire family members to succeed. As the Chinese saying goes, “preparedness ensures success, while unpreparedness lends to failure”. Family Trust is like a complex wealth project that requires careful planning, in which a solid one will be built for passing down through multiple generations after a dilapidated building is dismantled. This requires a joint effort that involves chief designers, architects, and property managers working together. Given that, high-net-worth individuals and ultra-high-net-worth individuals should make planning for setting up Trust as early as possible.
Hong Kong Trust Global Financial Forum Wraps Up in Shenzhen
On the afternoon of February 25, 2025, Hong Kong Trust Global Financial Forum – Hong Kong & US Listing Networking Session (Shenzhen) concluded successfully in Futian Shangri-La, Shenzhen. Sponsored by Hong Kong Fiduciary Association Limited (HKFA), this event was co-organised by Hong Kong Trust Capital Management Limited, AllBright Law Offices, Ernst & Young, Rainbow Capital (HK) Limited, Hong Kong Enterprise Association Limited, and Inheritance Asset Management Limited. As the second tour of Hong Kong Trust Global Financial Forum Series, the event continued to echo the theme, focusing on the impact of the “New Nine Guidelines”issued by China’s State Council on mainland enterprises’IPOs and international expansion. It delved into cutting-edge trends in overseas IPOs, key considerations for establishing overseas structures, and strategies for compliance and security. In addition, the forum gathered many industry leaders and elites, with more than 100 professionals in the financial, tax and corporate sectors, in which participants further discussed the new opportunities of listing and financing in Hong Kong and the US, sharing the latest views and practical experience, and providing valuable ideas and solutions for the growth of Chinese mainland enterprises venturing abroad. Meanwhile, the forum also focused on the important role of Offshore Trust in cross-border financing for enterprises, especially in the strategy of safe landing for wealth. Through setting up Offshore Trust, enterprises can achieve asset isolation and protection, tax optimisation, which ensures the orderly inheritance of wealth through flexible Trust structures. 1. Gathering of Big Names in the Forum for In-depth Analysis of the Lasted Market Trends In the guest sharing session, Lawyer Han Meiyun, Senior Partner of AllBright Law Offices, firstly appeared on the stage to share with the guests on the topic of Hong Kong’s IPO Boom and A+H Shares Model. With her profound legal background and extensive experience in the capital market, Lawyer Han Meiyun analysed the dynamic trends of the A-share and Hong Kong stock markets with practical cases. Moreover, she explained the key role of the A+H Shares Model in cross-border financing of enterprises. Combining with the current actual situation, Lawyer Han Meiyun proposed the capital market development model of “H first and then A”, which provides new Internationalisation strategies for enterprises. It also brought valuable insights and inspirations to the guests, helping enterprises advance their ideas and make precise design in overseas financing. Afterwards, Mr. Zhang Linghui, Audit Services Partner of Ernst & Young, Shenzhen, shared with the guests the audit differences between A-shares and Hong Kong shares. With his professional insight, Mr. Zhang deeply analysed the key differences between A-share and Hong Kong shares in terms of auditing process, standards and policies. Furthermore, he combined with the characteristics of other major capital markets such as the US stock market, and sharing valuable information to the guests, which enabling them to have a clearer and more comprehensive understanding of the listing rules of A-shares, Hong Kong stocks and the US stocks. All these provided important references to the enterprises in their cross-border financing and listing. After that, Mr. Danny Leung, Managing Director of Rainbow Capital (HK) Limited, shared his views on the key preparatory and planning for listing on the Hong Kong Stock Exchange (HKEX) and NASDAQ. Besides, he introduced the listing thresholds, the market environment and unique advantages of the Stock Exchange of Hong Kong Limited (SEHK) and NASDAQ respectively. Through comparing the listing costs and development prospects of the two jurisdictions,he made a clear timeline for listing on HKEX for the guests, covering the whole process from IPO preparation to listing, which designed to help enterprises navigate the listing process. The last sharing was brought Mr. Melvin Mui, COO of Hong Kong Trust Capital Management Limited (HKTCM). With his profound attainments and professional knowledge in the field of finance, Mr. Mui delved into the key role of Trust structure in the listing process of enterprises. On top of that, he elaborated on how the Trust structure can help enterprises optimise their equity allocation while effectively safeguarding shareholders’ rights and interests during the listing process, as well as how to achieve sound wealth appreciation and orderly inheritance of family wealth. Mr. Mui noted that Family Trust, as a powerful tool for wealth management, can be particularly well suited for high-net-worth individuals (HNWIs), which plays an effective role in wealth planning and security protection. Prior to IPO, one of the most important functions of Family Trust is its segregation of Trust assets in the establishment of Offshore Trust structure. Through a Trust structure, business owners can separate their personal assets from business assets, so as to shield personal wealth from business risks. His insights were both practical and though-provoking, which aroused much echo among guests. 2. Interactive Exchanges, Professional FAQ Received Positive Feedback The wonderful presentations by the four speakers were met with enthusiastic applause from the audience. This was followed by an FAQ session featuring Lawyer Han Meiyun, Senior Partner of AllBright Law Offices, Mr. Zhang Linghui, Audit Services Partner of Ernst & Young, Shenzhen, Mr. Danny Leung, Managing Director of Rainbow Capital (HK) Limited, and Mr. Melvin Mui, COO of HKTCM. The panel engaged in vibrant interactions and exchange with the attendees. Some of the questions about the exchange session are as follows: 1. What kind of circumstances will be met by a domestic enterprise to be recognised as an indirect overseas offering and listing? A: According to Han Meiyun, senior partner of AllBright Law Offices, according to the new filing regulations on overseas listings, the issuer shall be recognised as a domestic enterprise for the purpose of indirect overseas issuance and listing. In accordance with the relevant circumstances, and the regulator will generally consider the proportion of the enterprise’s financial indicators, business activities and the identity of the senior management, etc. However, in actual operation, the new regulations follow the principle of “Substance Over Form Principle”, i.e. in determining whether an issuance is an indirect offshore offering, the total assets, net assets, operating income, percentage of total profit, identity of executives and business operation of the enterprise should be taken into account, rather than just the formal place of incorporation or holding structure. 2. What financial preparations does a company need to make before listing overseas? A: Mr. Zhang Linghui, Audit Services Partner of Ernst & Young, Shenzhen, noted that listing marks an important milestone in the expansion of an enterprise. Prior listing, the key financial considerations includes the completeness of financial documents, business processes internal
HKT’s 9th Anniversary Celebration Shines in Malaysia!
On November 22, 2024, Hong Kong Fiduciary Association Limited successfully held the 9th Anniversary Private Gala Dinner & Global Trust Summit 2024 at the Diamond Ballroom in EQ Kuala Lumpur. This event gathered more than 300 collaborative partners, colleagues, and guests, who witnessed such a remarkable annual wealth ceremony. The event, themed “SHINING BRIGHT FOR 9 YEARS, WITH TRUST AS OUR GUIDING LIGHT,” reflected on the splendid accomplishments made over the past 9 years, from 2015 to 2024. Meanwhile, we sincerely hope that this evening will remain unforgettable, just as our commitment to providing clients with excellent trust services remains unwavering. The 9th Anniversary Celebration was divided into two parts: the first part focused on the “Global Trust Summit 2024,” aiming to offer further analysis of the current state of the trust industry and explore its future developments; and the second part was the “9th Anniversary Private Gala Dinner,” an honourable occasion to celebrate the achievements and contributions of Hong Kong Fiduciary Association Limited (hereinafter referred to as HKT) over the past nine years. I. Wisdom Sparkles with Brilliance| Global Trust Summit 2024 As the Summit kicked off, the guests jointly reviewed the past 9 years of diligence and hard work through our milestone video, which highlighted our unwavering dedication and relentless pursuit. Afterwards, Mr. Cyril Yeung delivered his opening speech. He is a renowned Hong Kong entrepreneur, the Founder of Hong Kong Fiduciary Association Limited, the Chairman of Hong Kong Enterprise Association Limited, and the Chairman of the Hong Kong Elderly Emergency Services Foundation. On behalf of HKT, Mr. Yeung expressed his warmest welcome and heartfelt gratitude to all the guests who traveled from various countries to attend. It was an opportunity to reflect on our remarkable developmental milestones over the past nine years, from inception to success. In retrospect, Mr. Yeung noted that throughout these wonderful years, relentless efforts have brought us to where we are today. Persistence, innovation, and a pragmatic approach have been the true driving forces behind our success. Reflecting on the past, our growth and development rest on your constant support and the trust you’ve placed in us. Looking ahead, HKT will continue to reach a broader client base globally by enhancing professionalism, broadening service scopes, and striving to shine even brighter on the global stage. In closing, Mr. Yeung once again expressed his sincerest gratitude to clients, partners, and staff for their unwavering trust and support. He looked forward to working hand in hand to create a brighter future for HKT. Subsequently, the summit officially commenced. Following the introduction video of Hong Kong Open-ended Fund Companies (OFC), Mr. Melvin Mui, Chief Operating Officer (COO) of Hong Kong Trust Capital Management Limited, provided the guests with a thorough explanation and analysis of OFC. He elaborated on the advantages and market influence of OFC while introducing the Islamic Open-Ended Fund (OFC) launched by Inheritance Asset Management Limited for Islamic investors. This innovative product demonstrates the company’s deep understanding of and active response to diversified investment needs. Mr. Mui stressed that the company is devoted to continuously optimizing its product matrix and service system, aiming to achieve steady asset growth for its clients through precise market insights and professional asset management capabilities. Together, they aspire to create a bright future for wealth inheritance. After the presentation of Hong Kong’s first Islamic Open-ended fund, Mr. Keith Chan, Business Development Director of Inheritance Asset Management Limited, delivered a presentation on the Global Review and Fund Performance Report 2024 to the guests. In his speech, Mr. Chan reviewed and analysed the latest developments, remarkable achievements, and the outstanding performance of the investment portfolio. He not only provided insights into the driving factors behind these accomplishments but also shared an exciting outlook on potential opportunities in the global financial landscape for 2025. II. A Happy Gathering with Guests | 9th Anniversary Private Gala Dinner Following the conclusion of the Global Trust Summit 2024, the 9th Anniversary Private Gala Dinner officially commenced! As the host of the event, Mr. Mong Chung Chee, President of the Hong Kong Fiduciary Association Limited in the Asia Pacific region, delivered the opening speech. He warmly welcomed and expressed his high regard for all the guests, noting the significance of this occasion. He celebrated the fact that friends from around the globe gathered in Kuala Lumpur to mark the 9th anniversary of the Hong Kong Fiduciary Association. He wished everyone a delightful evening filled with celebration and camaraderie. After an introductory video about the Dubai market, Mr. Jason Tan, Vice President for the UAE Region of the Hong Kong Fiduciary Association Limited, took the stage. Representing HKT’s expansion into Dubai, he shared invaluable experiences in providing premier products and services to high-net-worth (HNW) clients in the region. Mr. Tan highlighted that the establishment of HKT’s Dubai office reinforced their commitment to educating and sharing Trust and financial knowledge globally. It also marked a significant step forward in serving HNW clients in the Middle East and beyond. Subsequently, under the joint witness of Mr. Lawrence Chan, Operations Director of the Hong Kong Fiduciary Association, and Mr. Mong Chung Chee, a strategic cooperation agreement was signed by Mr. Jason Tan and Ms. Peini Huang, Customer Relationship Manager of Kreston Menon Chartered Accountants. This agreement aims to deepen collaboration and exchanges in delivering exceptional services to HNW clients. The signing of this agreement symbolised a shared commitment to enhancing service quality and exploring new pathways for providing outstanding professional services to HNW clients. As the lights dimmed, a cake commemorating nine glorious years was brought into the venue. The executives of HKT gathered on stage to cut the anniversary cake, symbolising joy and success. The vibrant music of the band raised the atmosphere to its peak as glasses clinked, and laughter resonated throughout the opulent venue. The 9th Anniversary Private Gala
Hong Kong Fiduciary Association Limited’s Second Exclusive High Tea Gathering
On October 9, 2024, Hong Kong Fiduciary Association Limited had a fantastic time hosting an exclusive High Tea Gathering in Dubai! We’re so grateful for our senior representatives from Hong Kong who made the trip to connect with key partners in Dubai, sparking great discussions on industry trends and market opportunities. This gathering was all about deepening mutual exchanges and opening doors for exciting future collaborations. As the event wrapped up on a high note, we’re eager to keep expanding partnerships across various sectors and countries, working together toward new growth and development goals.
Hong Kong Fiduciary Association Limited at the 2024 Dubai Forex Exhibition
On October 7-8, 2024 Hong Kong Fiduciary Association Limited was honoured to participate in the largest annual trading event—the 2024 Dubai Forex Exhibition bringing together over 18,000 professional attendees, more than 160 leading companies in the industry, and 130 expert speakers. Through in-depth discussions with global business elites, Hong Kong Fiduciary Association Limited gained valuable insights, not only into the latest trends and future developments in the Forex market but also into providing participants with innovative ideas and valuable inspiration for trust solutions. We look forward to collaborating with more global partners to jointly drive innovation and progress in the Trust sector!
Hong Kong Fiduciary Association Sponsors Malaysia’s First Bitcoin Conference
On October 3, 2024 Hong Kong Fiduciary Association Limited was honoured to be the main sponsor of the first Malaysia’s Bitcoin Conference, bringing together experts, innovators, and leaders in the Bitcoin field to further promote industry exchange and collaboration. At the conference, Hong Kong Fiduciary Association Limited shared our approach to integrating virtual asset planning, while also listening to diverse perspectives on Bitcoin and its development across various sectors. By combining trust structures with virtual asset planning, we enhance both flexibility and sustainability. We would like to express heartfelt thanks to the organisers and all participants for their enthusiastic involvement and support, and looking forward to continuing our collaboration in the future and embracing the limitless opportunities in the financial sector together.
Hong Kong’s Waves of IPOs Show It’s Ambition!
In the recent appearance, Bonnie Y Chan, the CEO of Hong Kong Exchanges and Clearing Limited(HKEX), pointed out that 100 companies are currently applying for listing on the HKEX, and that big IPOs are expected to rebound. All these underlying motivations behind it show Hong Hong Kong’s ambition to consolidate its position as Asia’s leading financial centre. 1. Companies queue for listings in Hong Kong Entering 2024, listing applications have surged in HKEX. Since the beginning of last month, HKEX has received about 100 new listing applications, with Mainland companies accounting for the majority of them. Particularly since 19 April, there are enterprises submitting listing applications on almost every working day. Under waves of different types of companies going global, listing Chinese companies in Hong Kong has become the epitome trend. 2. Plummeting stock prices on consecutive 10 trading days Apart from the wave of listings, the low valuation of stocks in the Hong Kong market is also one of the key factors attracting funds. Before this rally, the valuation of the Hong Kong stock market was the lowest level of the world’s major stock markets. Under multiple favourable factors, the global capital is rushing to the Hong Kong stock market, thus making the Hong Kong stock market show a major upward trend. 3. Seizing the golden opportunity and embarking on a journey towards building wealth According to Global Wealth Report 2023 released by the Boston Consulting Group (BCG): Hong Kong’s fund management industry will overtake Switzerland to as the world’s largest hub for cross-border private wealth management by 2027. According to the data, Hong Kong has about 2,000 licensed asset management companies in 2023, (compared to 1,194 in Singapore). Assets under management in Hong Kong amount to about US$2.2 trillion (US$1.5 trillion in Singapore). It should be noted that in the end of February, the Hong Kong Government announced cancellation of all tightening measures related to additional stamp duty. Meanwhile, Hong Kong’s monetary authority has relaxed the city’s decade-old lending curbs in the real estate market. In Conclusion The Hong Kong Government has adopted a mix of measures to boost its real estate market, such as “Investment Immigration”, “Stringent Market Cooling Tactics”, “New Plan to Boost Hong Kong IPOs”, etc. All these efforts show Hong Kong’s “ambition”. Globally, Hong Kong showcases golden investment opportunities to attract high-net-worth individuals.
