Goldman Sachs upbeat on wealth outlook despite worries over China’s tax scrutiny

Robust fee growth tipped for Hong Kong, Singapore banks as mainland Chinese clients’ offshore allocations driven by diversification: report

“We continue to believe offshore wealth allocation by Chinese clients is driven primarily by diversification benefits and access to a broader investment universe, rather than tax considerations alone,” wrote Melissa Kuang and Wayne Wang, Singapore-based analysts at the bank, in a report on Monday.

Concerns over the sector’s outlook have intensified following developments involving offshore trusts, overseas insurance income and other cross-border wealth activities in mainland China.

Goldman’s analysts viewed the measures largely as clarification and enforcement of existing rules rather than new restrictions.