Future of Chinese businessman Hongtao Liu’s $50m fortune decided

An Australian court has decided the future of a Chinese businessman’s $50 million fortune – but has it gone to his Adelaide-based widow or his China-based mother?

The international empire of a Chinese businessman, who rose from selling watermelons in the street to a $50 million fortune, will go to his wife in accordance with Australian law, a court has ruled.

In a first-of-its-kind judgment on Friday, the Supreme Court awarded Hongtao Liu’s lucrative estate to his Adelaide-based widow, Xianting Kong.

Justice Tim Stanley rejected claims by Mr Liu’s China-based mother, Junying Yan, that he should act upon that country’s laws and hand the estate over to her.

He also imposed an injunction banning Ms Yan from taking any further court action in either country to claim her son’s estate – finally ending the longrunning family war.

Mr Liu’s China-based mother Junying Yan wanted his $50m fortune. Picture: NCA NewsWire / Brenton Edwards

Mr Liu died in Japan in 2018 without a will, leaving the fate of his $50 million empire – which spanned businesses and properties in Australia and China – in limbo.

But it was awarded to his Adelaide-based wife Xianting Kong. Picture: NCA NewsWire / Brenton Edwards

To resolve the dispute, Justice Stanley had to rule not on the question of Mr Liu’s residency nor citizenship, but on his “domicile” – the country in which his “life was centred”.

At trial, counsel for Ms Kong said Mr Liu intended to live in Adelaide indefinitely, meaning Australian law should be followed and the money given their client and the couple’s children.

Counsel for Ms Yan said Mr Liu’s goal was to return to her side – meaning the laws of the People’s Republic of China, which would award her the money, should be followed.

Ms Kong gave evidence, telling the court she and her husband had twice informed Ms Yan that they were moving to Australia and not returning.

The home on Harrow Rd, St Peters, formerly owned by businessman Hongtao Liu. Picture: NCA NewsWire / Brenton Edwards

The home on Harrow Rd, St Peters, formerly owned by businessman Hongtao Liu. Picture: NCA NewsWire / Brenton Edwards

The court heard claims Mr Liu had been “driven out” as a child by Ms Yan in favour of his older brother – who was, he warned his Australian business partner, “full of s---”.

Ms Kong’s counsel accused the older brother, Hongbin, of using Ms Yan’s name on four Chinese lawsuits seeking to claim the lucrative assets – he denied the allegation.

Ms Yan, meanwhile, said she wanted the money awarded to her so she could keep it in trust for her grandson and pass it to him once she had died.

In his judgment, Justice Stanley said he accepted Ms Kong’s evidence – adding that, even if Chinese law were followed, she should still inherit the estate.

“Despite Mr Liu’s travel, he did not live anywhere else … his home, in St Peters, was his habitual residence … his life’s centre was Australia,” he said.

“As a result, as a matter of Chinese law, his movable estate should be distributed in accordance with the law of SA.”