While there is much talk about wealth transfer and succession planning for the next generation, there relative inaction in Asia, according to an HSBC report, especially within Greater China.
When it comes to succession planning, Asia is a relatively laggard. According to the «HSBC Global Entrepreneurial Wealth Report 2024», Taiwan had the highest portion of respondents that had not started to plan or had no solid plan in place at 65 percent. This was followed by Hong Kong (64 percent), mainland China (59 percent) and Singapore (56 percent).
In contrast, the global average was 52 percent led by the US (36 percent) and UK (40 percent).
Similarly, wealth transfer discussions were also absent in the region. China and the UAE had the least amount of respondents that had such talks (22 percent). This compared to the global average of 26 percent with the US (38 percent) and UK (30 percent) once again leading the pack.
Keeping it in the Family
Interestingly, Greater China markets were the least insistent in passing the family business to a kin. Taiwan once again saw the lowest amount of respondents (68 percent) stating the importance of keeping the business in the family and preserving its legacy. This was followed by mainland China (71 percent) and Hong Kong (74 percent) with the global average at 78 percent.
The report’s findings were based on research conducted by Ipsos UK on behalf of HSBC Global Private Banking with 1,798 high net worth business owners with at least $2 million of investable assets, including one-third (583) who had a net worth of over $100 million. The research was conducted online in mainland China, France, Hong Kong, India, Singapore, Switzerland, Taiwan, UAE, UK and US.
