AsianFin -- A Hong Kong High Court ruling on August 1 shed new light on an inheritance dispute within the family behind Chinese beverage giant Wahaha. The court confirmed that the late Wahaha founder Zong Qinghou had authorized his daughter Kelly Fuli Zong, now the company’s chairwoman, to establish three offshore trusts totaling $2.1 billion for her three half-siblings.
According to the judgment, Zong Qinghou signed a mandate authorizing Kelly Zong to create the family trusts—Trust A, Trust B, and Trust C—collectively referred to as the “Zong Family Offshore Trusts.” Each trust was designated for one of his three children from another relationship: Jacky Zong and his children, Jessie Jiele Zong and her children, and Jerry Jisheng Zong and his children, respectively. The beneficiaries exclude spouses and are limited to pre-marital individual assets.
Screenshot of the court judgment
The trusts are structured as capital-preserving, with principal assets invested in fixed income products at HSBC Hong Kong. Only interest income is distributed, and no withdrawals from the principal are allowed. The initial plan involved managing the trusts through a Private Trust Company (PTC), during which Kelly Zong served as shareholder. Upon transition to professional trustees, she relinquished all control and responsibility, handing over management to the three siblings.
The court documents also reveal that the three siblings petitioned the court to issue an injunction preventing Kelly Zong from handling the HSBC accounts holding the trust assets. They further demanded a full disclosure of the accounts’ current balances and a detailed record of all transactions since February 2, 2024.
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