Hong Kong takes the lead of corporate treasury centre hub with attractive tax incentives

Written by: Catherine Le Bourgeois and Wilson Yeung


Nowadays, owing to the growing importance of the Asian market, multinational corporations are encouraged to set up their corporate treasury centres (“CTC”) in the region. Hong Kong has been one of the ideal locations of choice for forming up regional CTCs. Hong Kong’s attractiveness in recent years, however, has been dampened by certain inadvertent taxation consequences, as well as the competition from Singapore, but since the announcement of proposed changes of tax legislation in the 2015/16 budget, as well as the CTC bill recently came into force in early June 2016, there were promising development in this respect in Hong Kong.  


Operation and Use of RMB Funds in Cross-border Investment & Financing

In spite of the global economic slowdown, the export-oriented feature of the Chinese economy has constantly been reinforced. With the volatility of currency exchange rates, there is a stronger desire for idle domestic capital to be converted into foreign capital. By setting up private funds, domestic, industrial and financial capital takes an active role in cross-border mergers and acquisition, and stimulates industrial integration on both a global and a regional basis.


Don’t Lose Trust in Trusts

When it comes to setting up a trust, it’s very easy for people to get confused, frustrated and lost. Indeed, trusts can be a very complicated topic because they have to simultaneously deal with so many complicated issues such as tax, jurisdictions, estate planning, asset managements and family citizenship. There is no one-size-fits allsolution. But if you area Chinesepassport-holding parents who are thinking of setting up a trust for the benefits of your US-citizen children (or children who will potentially become US citizens), this article is right for you. If not, please consult with a legal expert or professional in the trust industry.


2015: The Tortuous Development of Offshore Trusts in China

So far, most international trustees have to admit that the promotion of offshore trusts in the Chinese market is far from the optimistic expectations they held five years ago, but it is also not as pessimistic as what those who have retreated describe. Like other businesses which entered China for a share of the local market, a very high threshold stands in the way of such a large market, especially for offshore trusts. Due to the significant gap between local trusts and offshore trusts, promoting offshore trusts in China is like selling shoes in a country where people don't wear shoes. It is exciting but desperate, but when you feel hopeless, a sparkle makes you fall into reverie. 


On the Development of Family Trusts from the Perspective of the Trustee

In recent years, the wealth management issue that has received the closest attention in China is no doubt the reform of the trust system. As trusts are no longer a purely financial product or instrument, they have also become a mechanism for truly assisting people in managing and passing on their wealth. However, taking a broad view of the international community, every country that has successfully implemented the trust system has without exception steered a cautious course in designing the relationships between the Trustor (or Grantor), the Trustee, and the Beneficiary.

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