Investment

Rich Chinese step up hunt for foreign investment bets to mitigate risks at home

Published

2 years ago

December 19, 2022

HONG KONG, Dec 19 (Reuters) – Wealthy Chinese individuals are paring holdings of local securities and are increasingly looking at assets in the United States and elsewhere overseas – a trend that is set to gather pace in 2023, fund managers and industry sources said.

Hit hard by losses this year, rich Chinese have become more concerned by the uncertain outlook for a domestic economy grappling with COVID disruptions as well as the geopolitical impact of Russia’s invasion of Ukraine on China, they said.

Underlining the bleak return prospects at home, hedge funds with Greater China strategies have lost 12.9% for the year to end-November – on track for their worst year since 2011, according to Eurekahedge data.

Rich Chinese are also fretting about Xi Jinping’s “common prosperity” drive to reduce income inequality, asset managers said, adding that they are looking at overseas private equity and property investment opportunities in countries like the United States and Japan.

Although investing outside of mainland China is not a new development, a significant chunk of that wealth has usually been invested in Chinese assets such as Chinese securities listed in the offshore markets.

“Previously, the wealth creation for these people was not (about) buying American stocks, or buying American real estate…it is starting to change,” said Jason Hsu, founder and chairman of Rayliant Global Advisors.

The Boston-based asset manager has been receiving many queries from Greater China family offices to learn about U.S. economic policies and investment rules, he said.

One Hong Kong-based portfolio manager for a family office that has more than $1 billion in assets told Reuters he slashed his portfolio’s exposure to Chinese assets to a third from the 80% he had at the end of last year and is looking to further trim that exposure.

The portfolio manager, who asked that he and his firm not be identified as the issue is sensitive, has instead increased investment in overseas energy and property sectors – particularly in Japan and the United States – as well as in venture capital.

A managing partner at a separate Chinese family office with more than $1 billion under management said his firm was spending “a significant amount of time” studying money managers and investment opportunities in Japan and the United States, while also keeping an eye out for opportunities tied to China’s reopening.

OFFSHORE EXPOSURE

Underscoring the heightened interest, the U.S. consulate in Hong Kong held two virtual meetings in October and November to connect family offices based in Greater China with U.S. money managers, according to an email reviewed by Reuters and two sources familiar with the matter.

In one of the meetings held last month, Greenlight Capital president David Einhorn, who made his name by shorting Lehman Brothers, and Ken Goldman, who runs the family office of former Google CEO Eric Schmidt, were invited.

The two sources declined to be named as they were not authorised to speak to the media.

The U.S. consulate told Reuters that it frequently explains investment and economic trends in the United States to a wide variety of audiences. Goldman said he attended the session while Einhorn did not respond to Reuters queries.

Wealthy Chinese might have made a lot of money from their home market in the past few years but now they find this does not always work, said Eva Lee, head of Greater China equities at UBS Global Wealth Management Chief Investment Office.

“Investors have learned a lesson this year, they realised diversification is just so important,” she added.

Reporting by Xie Yu and Summer Zhen; Additional reporting by Selena Li; Editing by Sumeet Chatterjee and Edwina Gibbs

Our Standards: The Thomson Reuters Trust Principles.

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Economy

S&P/TSX composite up more than 250 points, U.S. stock markets also higher

Published

14 hours ago

September 19, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.

The S&P/TSX composite index was up 254.62 points at 23,847.22.

In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.

The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.

The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.

The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Investment

Canada’s Probate Laws: What You Need to Know about Estate Planning in 2024

Published

16 hours ago

September 19, 2024

Harry Miller

Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.

For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.

Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.

Let’s unearth how these updates can simplify the process for you and your family.

What is probate?

Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.

Here’s how it works.

Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.

Probate ensures everything is done by the book, giving you peace of mind during a difficult time.

Recent Changes in Canadian Probate Laws

Several updates to probate law in the country are making the process smoother for you and your family.

Here’s a closer look at the fundamental changes that are making a real difference.

1) Virtual witnessing of wills

Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.

Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.

2) Simplified process for small estates

Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.

Fewer forms and legal steps mean less hassle for families handling modest estates.

3) Substantial compliance for wills

Courts can now approve wills with minor errors if they reflect the person’s true intentions.

This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.

These changes help make probate less stressful and more efficient for you and other families across Canada.

The Probate Process and You: The Role of a Probate Lawyer

(Image: Freepik.com)

Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.

Here’s how they can help.

Navigating the legal process

Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.

Handling paperwork and deadlines

They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.

Resolving disputes

If conflicts arise, probate lawyers resolve them, avoiding legal battles.

Providing you peace of mind

With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.

With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.

Why These Changes Matter

The updates to probate law make a big difference for Canadian families. Here’s why.

Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.

With these changes, probate becomes smoother and more manageable for you and your family.

How to Prepare for the Probate Process

Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.

Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.

These simple steps make the probate process easier for everyone involved.

Wrapping Up: Making Probate Easier in Vancouver

Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.

Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.

Economy

Energy stocks help lift S&P/TSX composite, U.S. stock markets also up

Published

3 days ago

September 17, 2024

Anne Joseph

TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.

The S&P/TSX composite index was up 34.91 points at 23,736.98.

In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.

The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.

The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.

The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.

This report by The Canadian Press was first published Sept. 17, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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