Family businesses on the mainland are drawing less and less members of the next generation of owners in contrast to that in Hong Kong, a PwC survey showed.
Family businesses on the mainland are younger than those in the SAR and succession is therefore not a pressing issue, it said.
PwC said 42 percent of respondents on the mainland said they would pass on leadership and ownership to the next generation, but the percentage in Hong Kong was higher at 45 percent. Two years ago, 62 percent of mainland respondents said they would opt for leadership and ownership transfer to the next generation, while 69 percent in Hong Kong said they would undertake the transfer.
John Wong Chi-wai, China and Hong Kong family business and private client services leader at PwC, said part of the reason for the reduced number of mainland respondents opting for transfer was the emotional attachment that first-generation owners have to the business they created.