Trust planners face pressure as Hong Kong entrepreneurs go global

Differing legal systems can create friction for businesses operating across borders.

Trust providers are grappling with complexity as entrepreneurs spread their businesses, assets, and families across multiple jurisdictions, making wealth structures designed for a single domicile ill-suited to clients whose lives span borders.

That shift is forcing trust providers, which structure and manage wealth and succession plans, to adopt more flexible arrangements.

“Entrepreneurs are thinking in a far more global way than before — and they expect their wealth arrangements to move with them,” Vincent Chok, director at Legacy Trust Co. (Hong Kong) Ltd., told Hong Kong Business.

The trend is particularly pronounced in Hong Kong, where business owners have long operated beyond the city’s borders. An HSBC Holdings Plc report published in October 2025 found that eight in 10 entrepreneurs in Hong Kong hold multiple residences, one of the highest proportions globally.

About 37% have a house in Mainland China and roughly 27% in Singapore, alongside ties to markets such as Taiwan, Japan, the UK, and France.

“They want clarity over where their assets sit and how succession will work when their family is based elsewhere,” Chok said in an emailed reply to questions.

Trusts are also evolving into governance tools for globally dispersed families, rather than just estate-planning vehicles.

Chok pointed out that trusts increasingly need to consolidate assets held across different countries under a single structure, whilst separating ownership from management to ensure a smoother handover to the next generation.

That task is complicated by differing tax regimes, inheritance laws, and legal systems, which can create friction for families and businesses operating across borders. Regulatory shifts and geopolitical uncertainty add to the challenge.

“The global environment is changing quickly, making flexibility increasingly important,” Chok said. “The goal is not just to preserve wealth, but to create a framework that allows it to endure across generations and borders.”

The rise in multi-residency reflects structural realities of Hong Kong’s economy, according to Alberto Moel, professor of practice in finance at the University of Hong Kong.

“This hasn’t been a trend—it’s the way it’s been for a long time,” he said in a separate exclusive interview.

Entrepreneurs naturally expand beyond the city due to its small domestic market, making cross-border structures a necessity rather than a choice. “Being multi-resident is part of your business strategy.”

Moel added that many firms quickly extend operations to mainland China, Singapore, Canada, or beyond as they scale.

Despite greater mobility, Hong Kong continues to serve as a key base for many businesses, supported by its financial infrastructure and access to Mainland China.

“Hong Kong sees strong demand and supply through the northbound and southbound Stock Connect links,” he said, adding that the city continues to benefit from strong capital market activity.

Average daily turnover in Southbound Stock Connect, which links the mainland’s stock markets with Hong Kong, rose to $121.1b last year, according to Hong Kong Exchanges and Clearing Ltd.

Chok added that the city’s common law system and experience in handling cross-border capital continue to attract international entrepreneurs and families with interests across Asia.

“Hong Kong continues to be a very practical jurisdiction,” he said.

However, Hong Kong’s global image does not always reflect its underlying strengths, with perceptions abroad often lagging reality.

“People here know that—we like the standard of living, the infrastructure, the ease of doing business and the opportunities available,” Moel said. “But I don’t think a lot of that is clear to people outside of Hong Kong, because they see it as just another Chinese city.”