On the afternoon of January 10, 2025, Hong Kong Fiduciary Association Limited (HKFA), in collaboration with KPMG China, King & Wood Mallesons (Beijing), Hong Kong Trust Capital Management Limited (HKTCM), Hong Kong Enterprise Association Limited (HKEA), and Inheritance Asset Management Limited (IAM), successfully hosted the Hong Kong Trust Global Financial Forum2025 – Hong Kong & US Listing Networking Session at Sofitel Beijing Central. The event brought together over a hundred participants, including overseas business owners, financial experts, and international tax professionals, to explore new opportunities for listing and financing in Hong Kong and the US.

The forum focused on the impact of the “New Nine Guidelines” issued by China’s State Council on mainland enterprises’ IPOs and international expansion. It delved into the latest trends in overseas IPOs, key considerations for establishing overseas structures, and strategies for compliance and security. The event offered participating entrepreneurs valuable industry insights and practical advice, empowering them to seize global opportunities and advance steadily in their international ventures.

During the sharing session, Attorney Chen Qiansi, a partner in the Financial and Securities Department of King & Wood Mallesons (Beijing), delivered an insightful presentation on “Listing Standards and Opportunities in the US and Hong Kong.” Drawing on her extensive experience in client service, she provided a comprehensive comparison of the characteristics, advantages, and disadvantages of the two capital markets in their current contexts.

Attorney Chen Qiansi provided a detailed analysis of the listing standards and processes in the US and Hong Kong. She highlighted the advantages of the US market, such as its large scale and diverse investor base, while also pointing out challenges, including differences in laws and regulations, as well as strict information disclosure requirements. In contrast, Hong Kong has become a key platform for mainland Chinese enterprises looking to expand internationally, thanks to its efficient financing environment and global positioning. She emphasised that domestic enterprises face both opportunities and challenges when going global and encouraged business owners to fully leverage the listing opportunities in both Hong Kong and the US to drive their growth and unlock global potential.

Following this, Mr. Timothy Ma, Tax Partner at KPMG China, delivered a presentation on key tax considerations for Hong Kong and US listings. He provided an in-depth analysis of common offshore listing structures, emphasising critical tax factors to consider during the setup process. These included tax treaties, differences in tax rates, and anti-avoidance regulations across various countries and regions, aiming to ensure both compliance and tax efficiency of the structures.

Mr. Timothy Ma emphasised the critical importance of adopting tax optimisation strategies for founders of overseas-listed companies. He shared innovative approaches, including the use of family Trust structures for asset inheritance, demonstrating how carefully designed Trust clauses can preserve and grow family wealth while mitigating risks associated with estate and gift taxes in certain countries and regions. Furthermore, he discussed how Trust structures can help minimize potential tax liabilities, such as safeguarding family wealth from personal tax issues of individual family members. Mr. Ma’s presentation combined theoretical insights with practical case studies, providing attendees with valuable guidance and inspiration.

The insightful presentations by the two speakers were met with enthusiastic applause from the audience. This was followed by a roundtable discussion featuring Attorney Chen Qiansi, Partner in the Financial and Securities Department at King & Wood Mallesons (Beijing); Mr. Timothy Ma, Tax Partner at KPMG China; Mr. Melvin Mui, COO of HKTCM; and Mr. Keith Chan, Business Development Director at IAM. The panel engaged in vibrant exchanges with the attendees, offering valuable insights and perspectives.

In response to the question, “What are the advantages of setting up a family Trust before listing?” Mr. Melvin Mui, COO of HKTCM, highlighted that establishing a Trust structure in advance and holding listed company equities through the Trust offers significant benefits for entrepreneurs. This approach ensures the stable transfer of family wealth to future generations according to a predetermined plan.

Additionally, aTrust structure effectively safeguards assets by isolating them from personal debts, marital disputes, and other potential risks. It also provides advantages in tax planning, enabling the legal optimisation of tax structures to reduce tax burdens. More importantly, by centrally holding company equities through a Trust, families can prevent equity dispersion, consolidate control over the enterprise, and ensure its long-term stable development.

What role do asset management companies (AMCs) play in overseas IPOs?

Addressing this question, Mr. Keith Chan, Business Development Director of IAM, explained that asset management companies play a crucial role in overseas IPOs by offering a wide range of specialised services to enterprises and entrepreneurs venturing globally. Firstly, their experienced professional teams possess a deep understanding of international capital markets, supported by extensive practical expertise. Secondly, AMCs leverage mature operational models to efficiently coordinate resources from various parties, ensuring a smooth and successful IPO process.

Taking IAM as an example, the company holds Type 4 (advising on securities) and Type 9 (asset management) licences issued by the Securities and Futures Commission of Hong Kong. With rich experience in Trust asset management and investment, IAM provides overseas enterprises with professional guidance on global investment strategies, helping them optimise asset allocation and enhance investment returns. Additionally, IAM offers tailor-made family wealth management solutions for entrepreneurs, encompassing legal, tax, and investment services, to safeguard and steadily grow family wealth.

The Hong Kong Trust Global Finance Forum – Hong Kong and US Listing Networking Conference marked a remarkable start to the year for the Hong Kong Fiduciary Association Limited (HKFA). With the strong support of our partners and guests, the event concluded successfully and with great impact.

The forum offered mainland Chinese enterprises valuable information and professional guidance on overseas listings, helping entrepreneurs better understand and navigate the opportunities and challenges of international markets.

This event successfully established a collaborative platform connecting mainland enterprises venturing abroad with top-tier overseas listing service providers, fostering in-depth exchanges and cooperation. By leveraging this platform, mainland enterprises can more effectively access resources in overseas capital markets, accelerating their progress toward global expansion.

Looking ahead, HKFA will continue to serve as a vital bridge connecting high-net-worth clients with top-tier financial service providers. The association plans to host a series of professional conferences across various cities, fostering more efficient communication and collaboration between both parties while delivering exceptional products and services. Stay tuned for future events!