<div id="readability-page-1">Recently sanctioned Chinese-Cambodian businessman Chen Zhi has been linked to a network of entities in Hong Kong, with the move triggering regulatory measures and prompting auditors and directors to quit his firms.\nCompany documents reviewed by the Post reveal an interconnected group of firms sharing directors and addresses tied to Chen, luxury real estate and previously appointed international business figures, raising questions about the depth of his operations in Hong Kong and the potential exposure of associated entities.\nHong Kong police have frozen HK$2.75 billion (US$353 million) in assets, including cash, stocks and funds, believed to be the proceeds of crime from his cross-jurisdictional telecoms fraud and money‑laundering network.\nThe US Department of the Treasury designated Chen Zhi and the Prince Group Transnational Criminal Organisation (TCO) in mid-October, alleging that the group runs a criminal enterprise through online investment scams such as “pig butchering”, human trafficking, torture, money laundering and illegal online gambling.\nChen remained the controlling shareholder of two sanctioned Hong Kong‑listed firms, Geotech Holdings and Khoon Group, as of Friday.\nGeotech Holdings stated in mid‑October that it expected no “material adverse impact” on operations, noting that Chen had no role in the group.\nGrant Thornton, however, resigned as Geotech’s auditor with effect from November 21, last year, citing US sanctions on Chen Zhi – a former executive director and the controlling shareholder of Geotech – according to another Geotech filing.\nWith effect from October 27, last year, Lok Kar‑kin resigned as an executive director of Geotech.\nKhoon Group similarly stated that no directors were involved and that its business was principally in Singapore.\nWith effect from November 4, last year, Khoon Group also recorded a series of resignations and appointments, including its chairman and chief executive.\nRSM Hong Kong would also not seek reappointment as auditor, citing sanctions imposed against Chen Zhi, a controlling shareholder of Khoon Group.\nHowever, legal experts warn that such denials may not shield these firms from the fallout.\nBasil Hwang, managing partner of law firm Hauzen LLP, said the “coordinated” action by the US, UK, Hong Kong and Singapore showed that “global cooperation on anti‑money‑laundering enforcement is active and alive”.\n“Companies anywhere in the world implicated in assisting or facilitating the Prince Group’s alleged illegal activities can therefore expect that they will come under scrutiny and should prepare to face challenges to their ability to bank, obtain insurance or otherwise participate in the global financial system,” Hwang said.\nXiang Fangliang, executive director and partner at Shanghai BeautyValley Law Firm, warned that even if a company claims no direct role in any violations, the way US and UK sanctions work would in practice cut off its access to banking, financing and insurance in Hong Kong.\nThese sanctions bite through US‑dollar clearing touchpoints, the threat of secondary sanctions, and the increasingly proactive risk controls and restrictive clauses adopted by financial institutions, he said.\n\n\n\n\n“Although Hong Kong regulators do not recognise the legal force of [foreign] sanctions, financial institutions often voluntarily take restrictive measures based on risk management, compliance requirements and considerations,” Xiang said.\nGeotech’s filings reveal operational links to other sanctioned entities.\nA 2019 filing showed Geotech’s subsidiary, the sanctioned Nova Management Services, provided property‑leasing and consultancy services to sanctioned Cheer Capital, the owner of the Tsim Sha Tsui commercial building at 68 Kimberley Road.\nGeotech’s interim results also listed bank deposits held with Prince Bank Plc, another sanctioned entity controlled by Chen.\nBeyond the listed firms, registry documents show a pattern of shared addresses, directors and offshore shareholders.\nAt least four sanctioned Hong Kong companies owned by the sanctioned BVI firm Praise Marble Limited operate from Tower II, Metroplaza in Kwai Chung.\nThe sanctioned Nova Management Services acted as company secretary for at least five sanctioned local entities.\nHwang noted that while such associations were “not automatically unlawful”, they trigger enhanced due diligence and reporting obligations under Hong Kong’s anti‑money‑laundering laws.\n“Given the pervasiveness of nominee arrangements in money-laundering operations, these companies that share addresses, directors or service providers with Chen... could be suspected of being associated with him,” Hwang said.\nHe added that such links frequently result in “reputational damage and practical restrictions on banking relationships”.\nXiang described shared addresses and directors as a “dangerous red flag” that placed these firms under a regulatory microscope, creating a presumption that they operated under the same control network.\n“Unless these companies can provide strong, verifiable evidence to prove their complete independence... their normal operating capabilities will suffer a devastating blow,” he warned, adding that they risked being treated with the same severity as the sanctioned entities themselves.\nOne company connected to this network, Asia Uni Corporation Limited, appointed high‑profile international directors just months before the sanctions.\nAccording to an organisation chart from Elite Trading Scandinavia submitted to Gothenburg Municipality in Sweden, Asia Uni was indirectly controlled by Chen Zhi via three layers of BVI or Cayman Islands firms.\nAsia Uni’s link to Chen’s sanctioned network also comes via former director Sheng Haoran, who is also the sole director of Cheer Capital, the sanctioned entity owning the building at 68 Kimberley Road.\nSheng resigned as director of Asia Uni on October 17, according to the company’s filing.\nAsia Uni appointed Fouad Fahmi Darwish and Ravinder Singh Thakran as directors in August.\nDarwish is the chief executive and managing director of Palms Sports PJSC, a sports management firm listed in Abu Dhabi.\n\nThakran was the founder and managing partner of Singapore‑based Turmeric Capital, former LVMH Asia group chairman and founder of L Capital Asia.\nChen’s network has also been linked to ultra‑luxury Hong Kong property.\nLand Registry documents show Giant Victory Holdings, a sanctioned BVI firm, bought House 1 at Mount Nicholson on The Peak for HK$1.08 billion, excluding 30 per cent or HK$324 million in extra stamp duties for using a corporate buyer, in early 2017.\nSanctioned individuals include Zhou Yun, identified by the US Treasury as Chen’s financial assistant.\nShe was linked to at least 13 sanctioned firms, including a group of companies beginning with “Mighty Divine” that operated from 68 Kimberley Road.\nZhou’s “Mighty Divine” group faced regulatory action, with the SFC suspending the licences of Mighty Divine Securities and Mighty Divine Investment Management.\nMighty Divine Securities had already suspended trading from October 17.\nThe Insurance Authority also imposed restrictions on Mighty Divine Insurance Brokers with effect from October 28.\n“I would expect that there should be ongoing regulatory investigations against the entities in this group,” Hwang said.\nHe expected regulators to coordinate to seize further assets suspected to be proceeds of crime.\n“Liquidation of these entities by way of winding up is possible, initiated either by creditors... or else following regulatory enforcement efforts and proceedings,” he said.\nThe company secretary for at least four sanctioned firms, including Zhou Yun’s Mighty Divine (HK) and Sun &amp; Sun, resigned the day after the US sanctions were announced.\nXiang warned that institutions providing audit, legal or company secretarial services to the intermediaries involved may be investigated for dereliction of duty and face practice penalties.\n</div>

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<p>Sanctioned businessman Chen Zhi's Hong Kong firms face resignations and asset freezes due to regulatory actions. Hong Kong police have frozen HK$2.75 billion linked to alleged telecom fraud and money laundering. Chen remains a controlling shareholder of Geotech Holdings and Khoon Group, both of which have seen auditor resignations. Legal experts warn that firms associated with Chen may face scrutiny and challenges in banking and insurance, despite claims of no involvement in illegal activities. Shared addresses and directors raise red flags, potentially damaging reputations and operational capabilities.</p>

Sanctioned Chen Zhi’s Hong Kong firms rocked by resignations and frozen assets