The troubles of "sweetness" of super high net worth people: the family office industry is still in the early stages of development

21st Century Business Herald Reporter Tang Jing Beijing report

People with high net worth also have "sweet" troubles. Who should I control so much money?

McKinsey's financial series of white paper "The Way of the World's Leading Family Office" released by McKinsey in November 2021 shows that in the next 5 years, the sum of personal financial assets in China's ultra -high net worth population will grow at a high speed at a rate of 13%. The 21 trillion yuan in 2020 increased to 38 trillion yuan in 2025. The number of ultra -high net worth families will also increase from 31,000 in 2020 to 60,000 in 2025 in the next 5 years.

McKinsey's division of the ultra -high net worth individuals is that personal financial assets exceed 25 million yuan, and personal financial assets include cash, deposits, bank wealth management, funds, trusts, stock bond investment, insurance, etc., excluding pensions, life insurance, real estate, etc.

Who is the wealth to take care of it is not only the financial management troubles of super high net worth individuals, but also the trillion blue sea in the eyes of wealth management institutions. With the continuous accumulation of residents' wealth and the first -generation entrepreneurs, the family office is increasingly well known. According to platform data, there are 1,584 companies in China that are used in their current names or the words "family office". They are targeting the potential track of high net worth individual wealth management.

"Barbaric Growth" in the home industry

In response to the current development status of the China -run industry, there has always been a drama that has been circulating in the field- "China's family office is more than the family." More people in the industry pointed out that the Chinese family office is currently in a "three -none" state -one No threshold, no supervision, three non -standards.

It is true that at the current regulatory level, there is no official definition of the family office, no corresponding regulatory regulations, and no relevant industry standards. However, as the world's second largest wealth management market, China's ultra -high net worth groups have grown rapidly and demand is increasingly diverse, and the family office industry has ushered in flying windows.

Zhu Jian, a member of the Standard Expert Committee of the Shanghai Sustainable Development Research Association, told a reporter from the 21st Century Business Herald that the household office is a brand new business service model for the Chinese market. Multiple factors have caused the current household industry to seem to be "barbaric growth". Case.

The so -called "three -none" state is essentially pointing to the same reason, that is, the family -run industry is still in the early days of development, and thousands of domestic family offices lack a unified concept and standard in the business model. At the same time, supervision is generally lagging behind the development of the market, and home -run enterprises are still in a state of contention.

Zhu Jian also said that the family office has undergone hundreds of years of sedimentation development in Europe and the United States to form a mature service model. Now it is inevitable that it will face localization problems.

If it is divided according to the capital attributes, the domestic market -run enterprises are generally divided into pure foreign capital, Chinese and foreign joint ventures, pure private and state -owned capital (family business department affiliated to state -owned financial institutions). From the perspective of the number of institutions, pure foreign capital There are fewer joint ventures with Chinese and foreign, and the number of pure private and state -owned capital occupies an advantage. From this perspective, the demand for localization of the family -run model will increase.

Compared with the top -down process of insurance, fund and other industries, the Chineseization of the household industry is more reverse from bottom to top. Due to the relatively scattered households at present, the degree of industryization is not high, and the lack of global industry institutions and organizations, in this market -oriented game and inspection process, some of them will inevitably adapt to Chinese customers and domestic markets in the Chinese market. Enterprises stand out, thereby becoming an industry imitation and targeting direction.

Independent Family Office VS Financial Institution Family Office

According to Zhu Jian, the Central State Office is currently divided into three categories: the background of financial institutions, the background of the law firm, and the independent third -party households. The predecessor of the third -party households is mostly investment companies and consulting service companies. Due to the inconsistency of the service model, the differences in market regions and customers, and the founders of the founders of the family -run enterprise, the differences between home and households are very different.

Considering that the industry is still in the early stages of development, it seems relatively stable to rely on financial institutions and law firms, but the independent office is not without advantages. McKinsey said that because the family office is not affiliated with any financial institutions, it often maintains independence. It really stands on the family perspective to choose and recommend suitable products and services, and cross -term service through intergenerational cycles, which is highly consistent with customer interests.

Jiang Peng, chief researcher at the Institute of Family Affairs, believes that these three types of family offices have their own advantages, which are indispensable part of the home service module. The household service of the banking department and the trust department has an advantage in product configuration and service radius; lawyers are the core of home service services, and all home service services need to be defined and protected by law; while the fastest independent third -party home office currently develops, The flexibility of service and the formulation of comprehensive schemes are more advantageous. In actual operations, the above -mentioned types of home -to -houses will often cooperate and communicate with each other, forming an ecological chain of the family -run industry.

Earlier, Li Qun, president of the Jinghua Family Family Office, also told reporters that the independent family office and financial institutions are not alternative. Financial institutions have more resources and more flexible households. For customers, some service functions require the cooperation of households and institutions. Only to complete.

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