No clear rules for family trusts: UBS

Meanwhile, wealthy local residents are looking forward to having their assets properly protected for the second generations.

"If family trusts are legalized and have clear regulations, I would definitely choose to set up one to ensure that my children will access a certain amount of money as they grow up," said Chen Xiuqing, a property developer in Wenzhou, Zhejiang province.

UBS Securities said that most local businessmen are wisely allocating their financial assets.

"Fewer people are putting their money in the stock market and in the real estate market. At the moment, most of them are waiting for better investment opportunities, while they choose to buy low-risk financial products from banks and other financial institutions," said Jason Liu, head of the corporate advisory group at UBS Securities.

Liu added that trust products with controllable risks also are becoming quite popular among Chinese businessmen.

Meanwhile, more local businessmen are also choosing to make direct investments.

Asia Pacific's wealthiest investors are moving money into direct investment opportunities and away from capital markets as they see greater opportunities in other businesses and in real estate, rather than in the equity and bond markets, according to the second annual UBS/Campden Wealth Asia Pacific Family Office Survey.

The survey showed that real estate investing receives the biggest asset allocation among all the markets in the region.

In addition, Chinese businessmen are also eyeing enhanced educational opportunities for their children when they place their assets overseas.

"More clients are willing to send their children overseas to high schools and universities, which they see as an opportunity to see the world and bring some knowledge back to help run the family businesses," said Liu.