Thursday, 25 April 2024

AVIC Trust: Empowering a better life through family trusts

5 min read

AVIC Trust leads China’s dynamic family trust sector with assets over $69 billion, demonstrating innovation and expertise, and spearheading transformative trends

In recent years, family trust has experienced rapid growth in China. Data shows that by the end of the first quarter of 2023, the total scale of family trusts was approximately RMB 497.6 billion ($69.1 billion), with around 26,000 clients setting up a family trust. As one of the core functions of trust, family trust is becoming an important area for trust companies to plan for business transformation.

AVIC Trust is one of the earliest trust companies in China to explore the family trust business. It has strong innovative capabilities and practical experience in equity trusts, insurance trusts, and charitable trusts. AVIC Trust has successfully completed a large amount of equity trusts and has provided leading comprehensive services in the industry. After years of market expansion, AVIC Trust’s family trust assets have exceeded RMB 50 billion ($6.9 billion).

In innovation, AVIC Trust is an outstanding trust company with several breakthrough cases in the industry. For example, the first domestic case of intellectual property family trust, the first domestic case of employee benefit trust for a H-share listed company in Hong Kong, the first philanthropy trust for enhancing charity culture, and the employee shareholding trust for A-share listed companies. 

In recent years, AVIC Trust has done more in-depth explorations in family trusts related to listed company shares, non-listed company equity, and charitable trusts for passing on family value. The family trust structures are more diverse, providing overall solutions for entrepreneurs’ wealth-planning in corporate governance, smooth wealth transfer and inheritance, and fostering and developing the next generation of successors.

In market development, AVIC Trust has built very close relationships with most of the top Chinese private banks, securities firms, and insurance companies, providing trust services to their high-net-worth clients on a daily basis, which makes AVIC trust stand out as a leading trust service provider in the market.

For client service, AVIC Trust has developed the Liuhe Kunpeng wealth management brand. Liuhe symbolises ‘ongoing through generations’, while Kunpeng stands for ‘soaring thousands of miles’. It was the first to set up the Kunpeng Family Office in the industry, bringing together experts and professional resources in education, investment, law, taxation, family governance, and charity, to provide all-round services for ultra-high-net-worth clients, and complementary services for other financial institutions, helping to enhance an ecosystem in family wealth management and wealth planning service.

As for digital support, AVIC Trust has independently developed the Kunpeng Steward system, a specialised information platform for supporting the entire process of family trust management. This platform not only serves in-house family trust clients but also provides support for external institutions, leveraging management capabilities for the entire family trust market. The platform has closely linked with leading private banks, facilitating business communications, and finally will benefit family wealth management quality and efficiency.

Keywords: Assets, Equity Trusts, Insurance Premium Trusts, Charitable Trusts, Intellectual Property, Employee Incentive Trust, H-share Listed Company, National Family Charitable Trust, Employee Shareholding Service Trust, A-share Listed Companies, Corporate Governance, Succession, Private Banks, Securities Firms, Insurance Channels, Liuhe Kunpeng, Kunpeng Family Office, Family Wealth Management, Inheritance Service Ecosystem, Kunpeng Steward
Institution: AVIC Trust
Country: Hong Kong
Region: East Asia
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