AsianFin – The High Court of Hong Kong ruled on Friday that Kelly Zong Fuli, the heiress of late beverage magnate Zong Qinghou, is prohibited withdrawing or transferring money from a 1.8 billion HSBC account, as a high-profile inheritance feud unfolds in front of the public.
The bank account is at the heart of a high-stakes lawsuit that pits three claimants of a multibillion-dollar inheritance against their half-sibling, who is now the Chairwoman and CEO of Hangzhou Wahaha Group.
The freeze on the account will remain effective until another parallel lawsuit filed in a Hangzhou court is resolved, or until a further order is handed out by the Hong Kong court, according to a ruling by Deputy High Court Judge Gary CC Lam on Friday.
The three plaintiffs, who are extramarital children of Zong Qinghou, the once richest person in Chinese mainland, and his company’s senior executive Du Jianying, filed a lawsuit against their half-sister in December 2024, demanding US$1.8 billion in the account. They also alleged that their half-sister, who was publicly known as the late magnate’s only child until the lawsuit surfaced, had withdrawn more than US$6 million from the account. The account is alleged to be the primary funding source for three offshore trusts promised to the trio: Jacky, Jessie, and Jerry Zong.
The plaintiffs allege that Kelly Zong breached a family agreement by failing to establish the agreed-upon trusts following their father’s death in February 2024 and by withdrawing over US$6 million from the account.
The High Court said that there were “serious issues to be tried” regarding a possible breach of agreement. The plaintiffs presented two handwritten wills and a letter dated February 2024, signed by Kelly Zong, affirming her commitment to setting up the trusts. A formal agreement between Kelly Zong and her half-siblings was reportedly finalized in March, but they now claim she has not fulfilled its terms.
Nearly 100 people—including journalists, law students, and members of the public—gathered outside the courtroom ahead of the brief but closed hearing.
Hangzhou Wahaha Group, founded in 1987 and now one of China’s leading beverage companies, has distanced itself from the legal proceedings. On July 14, the company stated that the lawsuits in Hong Kong and Hangzhou are unrelated to its business operations. Under Kelly Zong’s leadership, Wahaha recorded revenues of 70 billion yuan (US$9.71 billion) last year—a 40% year-on-year increase that outpaced competitors such as Nongfu Spring.
Wahaha operates under a mixed ownership model: a Hangzhou government investment entity holds a 46% stake, the Zong family owns 29.4%, and 24.6% is held by employees through a stockholding platform.
The late beverage billionaire was widely known for his traditional family values. Now his image is under public scrutiny over revelations about extramarital children and the ongoing inheritance dispute. The controversy has also raised questions about corporate governance and the loss of state-owned assets at one of China’s most iconic consumer brands.
Kelly Zong, a Pepperdine University alumna, briefly offered to resign as CEO in July amid reported strategic disagreements with other shareholders. However, Wahaha later announced she would remain in her role following what it described as “friendly negotiations.”
