China has set up specialist teams — combining government officials, inspectors and regulators with hired lawyers and tax advisers — to identify and tax ultra-high-net-worth individuals, according to Dimsum Daily, which cited people familiar with the matter. The teams follow a rule announced in July 2026 that brings assets held in offshore trusts, and the income they generate, within the scope of individual income tax, with an October 2026 cut-off for affected taxpayers to settle related obligations.
Dimsum Daily reported that Haidilao co-founder Shu Ping sold about 259 million shares, raising roughly HK$2.75 billion, after her family faced an unexpected tax charge, according to market disclosures. In a separate case it described, the controlling shareholder of a Guangzhou company was initially assessed 100 million yuan in back taxes; after the company said it might relocate to Shanghai, local authorities reportedly reduced the demand to 5 million yuan. Advisers quoted in the report said some clients are exploring second passports over fears of a possible exit tax, while others are liquidating holdings or arranging offshore loans to cover bills.
Analysts cited in the report said enforcement extends beyond the mainland to assets held in Hong Kong, with attention on wealth estimated in the trillions of US dollars.
For anyone holding assets in an offshore trust structure connected to mainland China, or advising clients who do, the dates and figures to track are the July 2026 rule itself and the October 2026 settlement cut-off; the enforcement-team and case details above are as reported by Dimsum Daily and have not been independently verified by Zagdim.
