Hong Kong Court Freezes $1.8 Billion Linked to Inheritance Feud

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Hong Kong’s High Court has barred Wahaha chairwoman Kelly Zong Fuli from accessing a $1.8 billion HSBC account—assets which lie at the heart of an inheritance dispute involving China’s largest private beverage company.

Deputy High Court Judge Gary CC Lam on Aug. 1 granted the freeze order, which will remain in place pending rulings by the Hangzhou court, as key issues hinge on mainland Chinese law, according to the 42-page ruling.

The court found there were “serious issues to be tried” over allegations that Kelly Zong breached an agreement to establish three offshore trusts worth a total of $2.1 billion in favor of her three half-siblings.

The plaintiffs—Jacky, Jessie, and Jerry Zong—claim to be the children of Wahaha founder Zong Qinghou, an allegation previously unknown to the public before July.

The legal battle began in December 2024, when the three half-siblings filed suit in Hong Kong against Kelly Zong and Jian Hao Ventures Limited, a company associated with the Wahaha chairwoman.

They alleged their late father had agreed to create offshore trust funds totalling $2.1 billion in their favor before his death in February 2024, but that Kelly Zong wrongfully retained control of the funds, according to court documents.

They asked the court to confirm their beneficiary status and prevent further dissipation of assets.

Wahaha Group, based in Hangzhou, is one of China’s largest privately owned beverage companies. Founded by Zong Qinghou in the late 1980s, it became famous for products like Wahaha A&D Calcium Milk and bottled water, and founder Zong Qinghou was once named China’s richest man.

Zong Qinghou cultivated an image of frugality and simplicity, wearing cloth shoes and living modestly, while publicly recognizing only one child—Kelly Zong, now Wahaha chairwoman.

The current legal case, however, has upended his public legacy—with Chinese media reports in July alleging that Jacky, Jessie, and Jerry Zong are the illegitimate children of Du Jianying, a former Wahaha executive.

Zong Qinghou was also a delegate to the National People’s Congress, China’s rubber-stamp legislature, from 2003 to 2018.

Under Chinese law, children out of wedlock have equal inheritance rights under Article 1071 of the Civil Code.

The Hong Kong ruling aims to preserve the status quo of the $1.8 billion trust account and does not determine ownership, pending detailed inquiries in both jurisdictions, according to the ruling.

Kelly Zong has argued in the court filings that the HSBC funds do not amount to enforceable trust assets, calling the $2.1 billion figure “aspirational” and maintaining that she never refused to carry out her father’s wishes.

The Epoch Times has reached out to Kelly Zong’s legal counsel for comment.

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