Hong Kong Wealth Management Grows Despite Offshore Trust Tax Scrutiny

Hong Kong offshore trust tax scrutiny is complicating wealth planning for mainland Chinese families even as the city's private wealth industry expands.

The issue received limited public discussion at recent events including the Global Financial Leaders' Investment Summit and the PWMA Wealth Management Industry Summit 2026.

A Private Wealth Management Association and KPMG China report showed private wealth assets under management rising 24% year-on-year to a record HKD12.9tr (USD1.65tr), surpassing the previous HKD11.3tr peak in 2020.

China's finance ministry said in July that a 20% personal income tax applies to investment gains from offshore trusts.

The developments raise cross-border tax and succession planning considerations for family offices serving mainland Chinese clients.