Enforcing a China court order for repayment of a RMB fifty million loan, the High Court in New Zealand was suspicious of claims the debt had been repaid with Weihong Cheng rapidly reorganised her financial affairs on learning of steps taken to enforce the overseas judgment against her New Zealand assets.
In 2018, Ms Cheng and her husband Shiping Tong guaranteed their company’s RMB 50 million borrowing from Tianjin Junyuan Technology; approximately NZD 10.8 million at the time.
Junyuan Technology is incorporated in China.
When the one year loan was uplifted, Mr Tong transferred 83.8 million shares in Hong Kong listed company Lisi Group to Junyuan Technology.
Ms Cheng was to later argue Junyuan had sold-down these shares; the debt has been repaid, she claims.
Junyuan Technology says the shares were transferred as security for repayment and that the loan remains unpaid, despite two rescheduled payment dates.
The High Court was told of both a trial and later retrial in the Tianjin People’s Court over the disputed debt. In both trials, Mr Tong and Ms Chen were held liable for repayment; the second reducing the amount due on account of real estate transferred to Junyuan Technology in part payment.
In 2024, Junyuan Technology attempted multiple times to serve legal notice on Ms Cheng at her Christchurch home of its intention to have the China court judgment enforced through the New Zealand courts.
Evidence was given of Ms Cheng’s daughter being the only one to answer the door. She refused to provide contact details for her mother, saying her mother was overseas.
Legal service was achieved by court-approved substituted service on her daughter.
Appearing in court, Ms Cheng said her only New Zealand assets were some $12,700 in sundry bank accounts.
Evidence was given of Ms Cheng being trustee of, or having control over, two family trusts owning five Christchurch properties.
Learning that these properties might be seized, Ms Cheng arranged for discharge of a $3.8 million debt owed to her by these trusts and further arranged for her daughter and an independent nominee company take control of trust assets.
In the High Court, Justice Robinson dismissed her application to have charging orders removed from the Christchurch properties, allowing Junyuan to potentially recover the debt still owed with a forced sale.
With accrued interest also unpaid, the total due is close to double the initial ten million dollar loan.
Ms Cheng provided no concrete evidence that Junyuan has sold down the Lisi Group shares in reduction of the debt, he said.
Tianjin Junyuan Technology Development Co Ltd v. Cheng – High Court (19.01.26)
26.063