Key facts
- Hong Kong's High Court dismissed an appeal by Zong Fuli, upholding a freeze on a $1.8 billion HSBC account.
- The freeze is linked to an inheritance dispute initiated by three of Zong Qinghou's extramarital children.
- Plaintiffs allege Zong Fuli breached a family agreement by failing to establish offshore trusts valued at $2.1 billion.
- The court found "serious issues to be tried" and prohibited Zong Fuli from accessing the frozen funds.
- A disclosure order compels Zong Fuli to provide detailed information about the HSBC account.
Hong Kong's High Court has dismissed an appeal by Zong Fuli, the eldest daughter of the late Wahaha Group founder Zong Qinghou, leaving in place a freeze on a $1.8 billion HSBC account. The ruling maintains the asset lockdown pending the resolution of a lawsuit in Hangzhou, where three other children of the billionaire beverage tycoon claim they are beneficiaries of offshore trusts allegedly set up by their father.
In a ruling on Friday, Deputy High Court Judge Gary CC Lam prohibited Zong Fuli from withdrawing or transferring funds from the account until the Hangzhou lawsuit concludes or further court orders are issued. The judge also approved a disclosure order requiring Zong Fuli to provide detailed information about the account.
The case was brought by three plaintiffs who identify as extramarital children of Zong Qinghou. They filed suit in December, demanding control of the $1.8 billion account and alleging that Zong Fuli, who was publicly believed to be the sole heir, had withdrawn over $6 million from the account and failed to honor a 2023 agreement to create three offshore trusts worth $2.1 billion.
Judge Lam stated there were "serious issues to be tried" concerning the alleged breach of the family arrangement. The ruling amended earlier language to specifically prohibit Zong Fuli from "withdrawing or encumbering" the HSBC assets. The court rejected a request for disclosure regarding a $1.08 million transfer, which Zong Fuli claimed was used for fund subscriptions. Jian Hao Ventures Limited, a British Virgin Islands company for which Zong Fuli is the sole director, is named as a co-defendant.