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Mum vs widow: Adelaide legal battle over businessman Hongtao Liu’s $50m estate may be settled by Chinese law

Control of a $50m business empire will be decided by an Adelaide court – and a judge may be forced to follow Chinese law.

Hongtao Liu’s mother Junying Yan, centre, leaves the Supreme Court with supporters after the start of a trial over her son’s $50 million estate. Picture: NCA NewsWire / Brenton Edwards
Hongtao Liu’s mother Junying Yan, centre, leaves the Supreme Court with supporters after the start of a trial over her son’s $50 million estate. Picture: NCA NewsWire / Brenton Edwards

The mother of a wealthy businessman is “seeking to enforce Chinese law” in Australia to claim the bulk of her late son’s $50 million international empire, a court has heard.

On Thursday, the Supreme Court was told it would have to decide whether to follow the laws of Australia or the People’s Republic of China to determine control of Hongtao Liu’s estate.

If Justice Tim Stanley rules Mr Liu intended to live in Adelaide indefinitely, his fortune will go to his wife, Xianting Kong, and their two children.

However, if he finds the businessman planned to return to China some day, his riches will be inherited by his mother, Junying Yan.

Xianting Kong, the wife of Hongtao Liu, leaves the Supreme Court after the start of a trial over the estate of her husband. Picture: NCA NewsWire / Brenton Edwards
Xianting Kong, the wife of Hongtao Liu, leaves the Supreme Court after the start of a trial over the estate of her husband. Picture: NCA NewsWire / Brenton Edwards
Mr Liu’s mother Junying Yan leaves the Supreme Court after the start of the trial. Picture: NCA NewsWire / Brenton Edwards
Mr Liu’s mother Junying Yan leaves the Supreme Court after the start of the trial. Picture: NCA NewsWire / Brenton Edwards

As revealed by The Advertiser in August, the legal war was sparked by Mr Liu’s death, while on a trip to Japan, in November 2018.

He died without a will, leaving in limbo the fate of his properties and businesses – including a power station – in SA, China and Hong Kong valued, at that time, at $30 million.

Opening the trial on Thursday, Simon Ower QC, for Ms Kong, said further inquiries had uncovered an additional $20 million worth of assets, all of which stood to be inherited by one of the two women.

Junying Yan waves to someone outside the Supreme Court on Thursday. Picture: NCA NewsWire / Brenton Edwards
Junying Yan waves to someone outside the Supreme Court on Thursday. Picture: NCA NewsWire / Brenton Edwards

The case, he said, would turn on the question of where Mr Liu was “domiciled” – or intended to live “indefinitely”.

He said Mr Liu, Ms Kong and their children moved to SA in January 2012, bought property – including a $3.2 million property at St Peters – and became Australian citizens in August 2016.

The Harrow Rd, St Peters property once owned by businessman Hongtao Liu. Picture: NCA NewsWire / Brenton Edwards
The Harrow Rd, St Peters property once owned by businessman Hongtao Liu. Picture: NCA NewsWire / Brenton Edwards
Liu Hongtao bought the property when he moved to Australia with his family. Picture: NCA NewsWire / Brenton Edwards
Liu Hongtao bought the property when he moved to Australia with his family. Picture: NCA NewsWire / Brenton Edwards

“Under Chinese law, he ceased to be a citizen of the People’s Republic of China, and ceased to have any right to reside there, when he became an Australian citizen,” he said.

“That’s very powerful evidence that this very wealthy man quite clearly intended to reside permanently in Adelaide.”

Mr Ower noted counsel for Ms Yan would argue her son “made statements at various times” that “at some point in the future” he “intended to return” to China.

He said they had alleged Ms Kong was “seriously out of control” in her dealings with Mr Liu’s estate, requiring them to act.

Xianting Kong leaves the Supreme Court after the start of the trial. Picture: NCA NewsWire / Brenton Edwards
Xianting Kong leaves the Supreme Court after the start of the trial. Picture: NCA NewsWire / Brenton Edwards
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“If Your Honour were to determine the domicile was in China, you would be called on to make a determination in accordance with the Chinese law of succession,” he said.

“The effect of this would be to enforce Chinese law (in an SA court).

“We say we will take control of the assets and will distribute them in accordance with the proper law, which are the laws of inheritance in SA.”

The trial continues.

Original URL: https://www.adelaidenow.com.au/news/south-australia/legal-battle-over-chinese-businessman-hongtao-lius-50m-estate-hinges-on-where-he-had-intended-to-live-and-judge-to-decide/news-story/6d9ac25a4055cf20bead0b1e53130978