Wealth succession and enterprise globalisation under structural strain

Chinese families and enterprises are navigating a period of transition marked by overlapping structural pressures. For high-net-worth families, the challenge lies in transferring wealth and control across generations amid more complex family structures, tighter regulation and increased transparency. For enterprises, particularly privately owned ones, global expansion has become both a necessity and a source of new operational and governance risk.

These two trajectories are closely connected. Family wealth in China is frequently concentrated in operating businesses, while overseas expansion exposes weaknesses in ownership clarity, decision-making authority and institutional discipline. The discussions at the Wealth and Society Forum 2025 reflected this convergence, focusing on how legal frameworks, governance arrangements and financial infrastructure shape long-term continuity.

Structural pressures shaping wealth and enterprise decisions

In opening remarks, Cindy Yu, executive director and Greater China CEO of TAB Global, publisher of Wealth and Society, and The Asian Banker, situated the discussions within a broader environment of international political uncertainty, economic slowdown and subdued consumption. She noted that these conditions have affected all sectors, including financial services, and have prompted both families and enterprises to reassess long-term priorities.

Yu observed that private wealth management is no longer centred solely on investment performance. Increasingly, families are concerned with diversified asset allocation, cross-border resource management and the sustainability of family governance across generations. At the same time, she highlighted the growing importance of supporting enterprises and entrepreneurs as they expand overseas, requiring coordination across government bodies, financial institutions and service providers.

Her remarks pointed to a shift away from transactional thinking towards structural and institutional considerations, where governance and long-term planning play a decisive role.

Research perspectives on wealth succession and globalisation

Drawing on industry research and case analysis, Hugh Zeng, senior research manager at TAB Global, highlighted patterns emerging from wealth management and enterprise globalisation initiatives. He noted that many of the challenges faced by families and enterprises are not caused by a lack of financial or legal tools, but by uneven execution and insufficient governance discipline.

Zeng observed that in both wealth succession and enterprise expansion, outcomes increasingly depend on the clarity of structure and decision-making rather than the sophistication of individual products. He pointed out that cross-border exposure magnifies these weaknesses, as differences in regulatory regimes and enforcement standards leave little room for informal arrangements.

His remarks underscored that succession readiness and global operating capability are becoming key benchmarks in evaluating long-term strategies for both families and enterprises.

Legal constraints in private wealth succession

The legal foundations of intergenerational wealth transfer were examined by Guo Weifeng, director committee member of the Global Wealth Management Business Centre at DeHeng Law Offices. Guo emphasised that many succession disputes arise not from the absence of legal structures, but from ambiguity in how rights, responsibilities and control are defined.

He noted that founders often prioritise asset protection while deferring decisions on authority transfer. This delay, Guo explained, increases the risk of conflict when succession is triggered by unexpected events rather than deliberate planning. In practice, unclear boundaries between ownership, management and beneficiary interests are a recurring source of tension.

Guo also highlighted the additional complexity introduced by cross-border arrangements. Differences in jurisdictional recognition, tax treatment and enforcement mechanisms can undermine otherwise sound structures. He stressed that legal certainty must be reinforced by governance clarity and shared understanding among family members, as documentation alone cannot resolve disputes.

Institutional approaches to intergenerational transfer

From an institutional perspective, Wu Haibo, general manager of the family office at COFCO Trust, observed that more families are seeking structured support to coordinate legal, financial and personal considerations. He noted that while some families are moving towards more institutionalised governance models, progress remains uneven.

Wu pointed out that reluctance to formalise decision-making authority is common, particularly among first-generation founders. Without clear governance mechanisms, he said, even well-designed structures struggle to function effectively as families expand and diversify.

Lu Qifeng, head of high-net-worth client business at Taiping Life Insurance, addressed succession from a protection and risk-management perspective. He emphasised that insurance solutions play a critical role in providing liquidity and stability during generational transitions. However, he cautioned that protection mechanisms are most effective when embedded within a broader succession framework rather than treated as standalone instruments.

Together, these perspectives reinforced the view that succession is a long-term process requiring coordination across legal, financial and governance dimensions.

Economic uncertainty and long-term strategy

The broader economic environment shaping both wealth and enterprise decisions was examined by Cao Xiao, chair professor and vice dean of the School of Finance at Shanghai University of Finance and Economics. Cao pointed to persistent global imbalances, including disparities between countries and widening income gaps within economies, as underlying sources of instability.

He noted that technological change and shifts in production methods have historically preceded periods of economic disruption. In the current environment, such structural adjustments are occurring alongside geopolitical tension, creating uncertainty around global growth prospects.

For China, Cao observed that policy trade-offs and structural constraints limit the room for traditional macroeconomic adjustment. While the country retains strengths in high-technology and advanced manufacturing, he noted that gaps in wealth management channels and institutional mechanisms remain an important challenge in the years ahead.

Financial infrastructure for enterprise globalisation

The operational realities of enterprise globalisation were examined by Wang Yue, general manager of the Pudong New Area Enterprise Going-Global Comprehensive Service Centre. Wang emphasised that overseas expansion has become an increasingly inevitable choice for many Chinese enterprises, driven by domestic competition, supply-chain security concerns and policy support.

She explained that enterprises expanding abroad must navigate complex regulatory, tax and compliance environments while managing multi-layered supply chains. Financial infrastructure, including trade finance, cross-border settlement and risk management, plays a central role in sustaining these operations.

Wang also highlighted the importance of integrated support ecosystems. She noted that effective globalisation requires coordination between public sector facilitation, financial institutions and professional service providers, with each party clearly understanding its role.

Academic framing of enterprise globalisation

Complementing these perspectives, Liu Gongrun, vice dean and research fellow at the CEIBS Lujiazui Institute of International Finance, provided analytical framing around enterprise globalisation under current global conditions. Liu emphasised that the reconfiguration of global trade and supply chains has increased the complexity of overseas expansion.

He noted that enterprises face not only commercial challenges, but also institutional and governance demands that require greater coordination across stakeholders. In this environment, Liu argued, the clarity of roles between government, financial institutions and enterprises becomes critical.

His remarks reinforced the idea that enterprise globalisation is no longer a linear expansion process, but a multi-dimensional transformation requiring institutional alignment and governance discipline.

Banking perspectives on cross-border expansion

The discussion between Wang and Arthur Zou, CEO of First Abu Dhabi Bank Shanghai, moderated by Liu, observed that many Chinese enterprises now approach global markets as an integral part of their business strategy rather than as a later-stage extension.

The panellists noted that these enterprises require comprehensive financial solutions encompassing foreign exchange risk management, global cash pooling and regional treasury structures. They emphasised that traditional lending alone is insufficient to support the complexity of modern cross-border operations.

They also stressed that while banks can provide infrastructure and expertise, responsibility for governance and compliance ultimately rests with the enterprise itself. Clear decision-making authority and accountability are essential for sustaining overseas growth.

Governance as a shared constraint

In closing remarks, Foo Boon Ping, president and managing editor at TAB Global, drew together the discussions on wealth succession and enterprise globalisation by highlighting governance as a shared constraint.

He observed that increasing structural sophistication cannot compensate for weak governance. In both family succession and enterprise expansion, unclear authority, delayed decision-making and misaligned incentives magnify risk as structures become more complex.

Foo noted that globalisation exposes governance weaknesses externally through regulatory and market discipline, while succession challenges often surface internally within families. In both cases, long-term continuity depends less on complexity and more on discipline, clarity and a robust governance culture.