Imminent intergenerational succession: Wealth transfer under the state of "fragility"

At this pivotal moment for intergenerational transfer, many HNW individuals remain in an “unsettled” state: substantial assets, but no formal, legally robust structure designed to withstand external shocks. The study finds that about two-thirds of respondents in Hong Kong and Mainland China do not have a formal succession plan (Hong Kong: 74%; Mainland China: 64%), creating a great intent-action gap.

A key barrier is a “knowledge paradox” — even with strong succession intent, many hesitate due to insufficient technical understanding of tax, legal, and cross-border regulatory considerations. In Hong Kong, 71% of respondents cited a lack of adequate technical information to move planning forward.

As uncertainty rises, HNW priorities are shifting from wealth creation to wealth continuity, with two distinct succession visions emerging:

• Hong Kong — “Responsible Protector”: The fortress is a “shield”, focusing on protecting outcomes, prioritizing capital preservation (43%) and resilience against external risks.
• Mainland China — “Growth Strategist”: The fortress is a launchpad, focusing on the long term, prioritizing stable growth (46%) and emphasizing heirs’ capabilities and the continuation of values.
  
  

Both markets share a common direction: succession is not only about money. Over one-third (38%) believe preserving family values matters. At the same time, concerns about wealth being squandered (Hong Kong: 31%; Mainland China: 46%) are driving more structured, phased approaches to asset transfer.

On implementation, the study suggests the market is increasingly combining tools in more practical and risk-controlled ways. Respondents use an average of about five succession tools, with life insurance emerging as a core pillar due to its speed, privacy, and simplified process. 80% of Hong Kong respondents and 92% of Mainland China respondents view life insurance as a primary succession tool. Key perceived benefits include privacy (73%), certainty and speed (72%), and coverage across generations (73%).

Given the real-world complexity of cross-border matters and multi-adviser coordination, nearly 70% of Hong Kong respondents consider managing multiple advisers a burden. As a result, the market is increasingly seeking a trusted “lead planner” who can coordinate legal, tax, and tool selection in a more integrated, one-stop approach — turning intent into action.

Wealth succession is never a one-person exercise. Many HNW individuals want to preserve family assets while protecting loved ones, maintaining lifestyle arrangements, and sustaining family values—without making difficult trade-offs between privacy, flexibility, and certainty. A sound succession plan should consider legal and tax arrangements, asset structure, and family members’ needs; clarify objectives and priorities; and identify the tools that can convert intentions into executable arrangements. Starting earlier increases the chance to simplify complexity and move from “unsettled” to resilient wealth—creating a clearer, more secure path for the next generation.

To read the full research study, please visit the research study of “HSBC Life — From fragility to fortress across generations: Navigating the evolving legacy landscape in Hong Kong & Mainland China”