When multiple roles converge, the empowerment of authority can also become the shackles of obligation.

On August 1st, a ruling from the Hong Kong High Court froze approximately $1.8 billion in assets held by Jian Hao Ventures Limited at HSBC, once again thrusting the controversy surrounding the Zong family trust into the center of public debate.

Despite widespread rumors of Zong Fuli’s “defeat,” the ruling was merely a procedural asset preservation measure. The Hong Kong court did not rule on substantive issues such as the establishment of trust obligations or asset ownership. The core determination of rights and responsibilities still awaits the final judgment from the Hangzhou court.

This dispute over a $2.1 billion family trust is not simply about the distribution of a wealthy family’s inheritance but rather a complex legal battle over trust-related rights and obligations.

Legal experts point out that Zong Fuli is entangled in multiple legal roles: as the trustee of the trust, a party to the agreement, and the controller of the funding company. These correspond to her roles as executor of her late father’s wishes, a party to agreements with Zong Jichang and two others, and the de facto controller of disputed assets.

Clarifying these intertwined legal identities is key to resolving the unresolved issues surrounding this billion-dollar trust.

Role One: Trustee—The Boundaries of Fiduciary Authority

Zong Fuli’s primary role stems from a “Letter of Authorization” signed with her father, Zong Qinghou, on February 2, 2024.

Under this document, Zong Qinghou authorized Zong Fuli to use Jian Hao Ventures’ assets at HSBC Hong Kong to establish three offshore “non-principal-depleting trusts” (distributing only income, not principal), each valued at $700 million, for Zong Jichang, Zong Jieli, and Zong Jisheng. In return, Zong Fuli held Jian Hao Ventures’ assets on behalf of Zong Qinghou, with Zong Fuli registered as the company’s sole shareholder and Zong Qinghou as its sole director.

On the same day, Zong Fuli signed a confirmation letter agreeing to the terms of the authorization and becoming Jian Hao Ventures’ sole shareholder.

Legal scholars argue that Zong Qinghou’s intent to distribute assets via trust is clear, with defined trust property and beneficiaries, suggesting a civil trust relationship between him and Zong Fuli.

However, the validity of the authorization remains contested. Some experts note that authorization typically terminates upon the death of the grantor unless explicitly stated otherwise. The ambiguity in the document leaves room for judicial interpretation.

This legal uncertainty directly impacts Zong Fuli’s responsibilities. If the authorization is deemed invalid, her obligation to establish the trust may dissolve. If valid, she must demonstrate compliance with her fiduciary duties, particularly regarding allegations of unauthorized fund transfers.

Role Two: Agreement Party—Breach of Commitment

Following Zong Qinghou’s passing, Zong Fuli’s second role emerged.

On March 14, 2024, Zong Fuli reached an agreement with Zong Jichang and two others regarding the disposition of Zong Qinghou’s estate. The agreement acknowledged the validity of Zong Qinghou’s wills, and Zong Fuli pledged to establish three irrevocable offshore trusts, each worth $700 million, using Jian Hao Ventures’ HSBC assets.

However, the trusts were never established. After nine months of failed negotiations, Zong Jichang and the others sued Zong Fuli in Hangzhou court on December 27, 2024, accusing her of delaying the process and breaching her obligations.

To safeguard the disputed assets, the plaintiffs also sought a preservation order from the Hong Kong High Court, freezing the HSBC accounts. They alleged that Zong Fuli had repeatedly ignored requests to finalize the trusts, constituting a material breach.

Zong Fuli countered that the agreement included a transitional arrangement—a Private Trust Company (PTC) model—where she acted as a trustee-shareholder during the transition. She argued this granted her participatory rights in structuring the trust, not just execution duties.

Legal experts note that whether Zong Fuli neglected her duties depends on judicial interpretation of the agreement and her actions.

Role Three: Controller of Jian Hao Ventures—Asset Management Authority

Zong Fuli’s third critical role is as Jian Hao Ventures’ sole shareholder and de facto controller.

This position grants her operational control over the company’s HSBC accounts. However, Z

Hong Kong High Court

The Hong Kong High Court is a major judicial body in Hong Kong, established during the British colonial era in the 19th century. It handles serious civil and criminal cases and operates under the principle of the rule of law, continuing its role after Hong Kong’s handover to China in 1997 under the “one country, two systems” framework. The court is housed in a historic building in Central Hong Kong, symbolizing the city’s legal heritage.

HSBC

HSBC, or the Hongkong and Shanghai Banking Corporation, was founded in 1865 in Hong Kong to finance trade between Europe and Asia. It played a key role in the economic development of Hong Kong and expanded globally, becoming one of the world’s largest banking and financial services organizations. Today, HSBC is headquartered in London and operates in over 60 countries, maintaining strong ties to its Asian roots.

Jian Hao Ventures Limited

Jian Hao Ventures Limited appears to be a private business entity, but there is limited publicly available information about its history or cultural significance. If it operates in a specific industry or region, additional context could help provide a more detailed summary. Without further details, it is best described as a commercial venture rather than a cultural or historical site.

Hangzhou court

The Hangzhou Court, located in Hangzhou, China, historically refers to the judicial and administrative bodies of the city, which served as the capital of the Southern Song Dynasty (1127–1279). During this period, Hangzhou became a major cultural and political center, with its court overseeing governance, law, and imperial affairs. Today, the term may also allude to the city’s historical legacy in Chinese legal and bureaucratic traditions.

Zong family trust

The **Zong Family Trust** is a historical institution associated with the influential Zong family in China, known for their contributions to business and philanthropy. Established during the late Qing Dynasty or early Republic of China period, the trust managed family assets, supported education, and funded public welfare projects. It reflects the traditional Chinese practice of family-based wealth management and social responsibility.

Letter of Authorization

The “Letter of Authorization” is not a specific place or cultural site but rather a document granting permission or authority to act on someone else’s behalf. Historically, such letters have been used in legal, diplomatic, and business contexts to delegate power or rights. If referring to a particular cultural or historical instance (e.g., a famous letter in history), additional context would be needed for a more detailed summary.

Private Trust Company (PTC)

The Private Trust Company (PTC) is a specialized entity established to manage trusts for wealthy individuals, families, or organizations, offering customized wealth preservation and estate planning solutions. Unlike traditional trust companies, PTCs are often privately owned and cater exclusively to a select group of clients, ensuring greater control and privacy. Historically, PTCs gained prominence in offshore financial centers but are now used globally, particularly in jurisdictions with favorable trust laws like the Cayman Islands, Bermuda, and certain U.S. states.

Jian Hao Ventures

There is limited publicly available information about “Jian Hao Ventures,” and it does not appear to be a widely recognized cultural or historical site. If it refers to a business or modern venture, it may be a private enterprise without significant historical background. For a more accurate summary, additional context or details about its origin and purpose would be helpful.