A Hong Kong court has ordered a freeze on a key HSBC bank account at the center of a high-profile legal battle involving the multibillion-dollar inheritance of Zong Qinghou, the late founder of Chinese beverage giant Hangzhou Wahaha Group, often dubbed “China’s Coca-Cola.”
Deputy High Court Judge Gary CC Lam issued the ruling on Friday, stating the freeze would remain in place until the resolution of a related lawsuit in Hangzhou or until the Hong Kong court issues further directions. The account, holding US$1.8 billion, is alleged to be the primary funding source for three offshore trusts promised to Zong’s three extramarital children: Jacky, Jessie, and Jerry Zong.
The trio filed a lawsuit in Hong Kong in December 2024 against their half-sister, Kelly Zong Fuli — Wahaha’s current CEO and publicly known until recently as Zong Qinghou’s only child. The plaintiffs claim that Kelly violated a family agreement by failing to establish the agreed-upon trusts after their father’s death in February 2024 and by withdrawing over US$6 million from the disputed HSBC account.
The High Court noted there were “serious issues to be tried” concerning a potential breach of agreement, as the plaintiffs presented evidence of two handwritten wills and a February 2024 letter signed by Kelly confirming her commitment to the trusts. A formal agreement between Kelly and her half-siblings was reportedly reached in March, but the plaintiffs now allege that she failed to honor it.
The case has drawn significant public attention. Nearly 100 onlookers, 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 most prominent beverage companies, distanced itself from the legal disputes, saying on July 14 that the lawsuits in both Hong Kong and Hangzhou do not involve company operations. The firm posted revenues of 70 billion yuan (US$9.71 billion) last year — a 40% surge during Kelly Zong’s leadership — outperforming rivals like Nongfu Spring.
Wahaha operates under a mixed ownership structure: a Hangzhou government investment arm holds a 46% stake, the Zong family 29.4%, and employees through a stockholding party own 24.6%.
Once celebrated for his adherence to traditional family values, Zong Qinghou’s image has come under scrutiny amid revelations of his extramarital children and the legal feud over his legacy. The saga has also cast a spotlight on corporate governance within one of China’s most iconic consumer brands.
Kelly Zong, a Pepperdine University graduate, had briefly offered to resign from her role as CEO in July, citing strategic disagreements with other shareholders. However, Wahaha later announced that she would continue in her leadership position following what it described as “friendly negotiations.”
