Core Insights - The discussion surrounding the "breach of trust" in the case of Xu Jiayin has shifted from sensationalism to a focus on wealth governance issues [1][2][3] - The term "breach of trust" is misleading; the Hong Kong High Court's ruling was a receivership order aimed at ensuring asset disclosure, not a declaration of the trust's invalidity [4] - The value of the trust system lies in governance rather than concealment, emphasizing the importance of proper management and accountability [4][12] Asset Protection Illusions - Illusion 1: Transferring assets to family members or companies to mitigate risk is high-risk, as such transfers can be reversed if deemed harmful to creditors [5] - Illusion 2: Offshore jurisdictions are not necessarily safer; established jurisdictions like Cayman and Hong Kong offer more stable legal protections despite stricter disclosure requirements [6][7][8] - Illusion 3: Complex structures do not guarantee safety; modern governance has shifted from "firewall thinking" to "governance thinking" due to increased scrutiny from information exchange regulations [9][10] Global Trust Industry Focus - The recent receivership order has garnered attention in the international trust community, with a focus on how Hong Kong balances transparency and protection [11] - Key questions include the impact of China's wealth rise on the global trust landscape and how cross-border trust governance can find common ground amid legal and cultural differences [11] Future Logic of Trusts - The core function of trusts is governance, establishing order and responsibility within families rather than merely serving as risk isolation tools [12][13] - The principles reflected in the Hong Kong court's ruling provide guidance for wealth governance in Asia, highlighting that trusts should be seen as governance tools rather than secretive structures [13][14] Reflections Post-Discussion - The conversation around Xu Jiayin's case has evolved, indicating a transition from viewing trusts as risk-avoidance tools to understanding them as governance systems [14] - For high-net-worth families in China, the focus should shift from where to establish trusts to how to manage them effectively [14]