ASEAN Plus Business Alliance (APBA) is pleased to share an article co-authored by our Co-Chairman, Tan Chong Huat, and Christina Tan, Associate (Foreign Lawyer) at RHTLaw Asia. The article examines how China’s new offshore trust rules may affect insurance-based wealth structures and cross-border wealth planning for PRC-connected families.

While certain financial products issued by regulated institutions may fall outside the definition of an offshore trust arrangement, the analysis does not end there. The authors explore how China’s Announcement No. 21 and Announcement No. 15 are shifting attention beyond legal form towards the substance of an arrangement—particularly who exercises control, how investment decisions are made, and whether governance and supporting documentation can withstand regulatory scrutiny.

As wealth structures become increasingly sophisticated and customised, robust governance, independent decision-making, defensible valuations and comprehensive recordkeeping may become just as important as selecting the structure itself. The article highlights why families, trustees and advisers should review not only the insurance product, but also the wider funding chain, ownership arrangements and evidentiary readiness behind it.

Read the full article here.