CHINA MEDICAL TECHNOLOGIES, INC. (IN LIQUIDATION) v. WU XIAODONG AND OTHERS

CHINA MEDICAL TECHNOLOGIES, INC. (IN LIQUIDATION) v. WU XIAODONG AND OTHERS

The court found that Wu and Tsang (with Zhu) deliberately orchestrated sham FISH and SPR transactions, caused CMED/CMED Tech to pay US$521.8m, and misappropriated funds through Supreme Well and associated entities; Wu, Tsang and Zhu committed fraudulent breaches of fiduciary duty, participated in unlawful means...

Source-derived case information.

Citation
[2026] HKCFI 276
Parties
1st Plaintiff (in Liquidation): China Medical Technologies, Inc.; 2nd Plaintiff: CMED Technologies Ltd; 3rd Plaintiffs (joint and Several Liquidators of China Medical Technologies, Inc. (in Liquidation)): Cosimo Borrelli and Chi Lai Man Jocelyn; 1st Defendant (chairman/ceo, Former Director): Wu Xiaodong; 2nd Defendant (cfo, Former Director): Samson Tsang Tak Yung; 3rd Defendant (former Cto): Chen Zhong; 4th Defendant (former VP Business Development & Compliance Officer): Zhu Feng (Charles); 5th Defendant: Chong Wing Hip; 6th Defendant: Hao Xiaoquing Allan; 7th Defendant (bvi Company): Supreme Well Investments Limited; 8th Defendant (bvi Company): East Hope International Limited; 9th Defendant (hong Kong Company): Cheer Link International Limited; 10th Defendant (bvi Company): Innovative Technology Investment Limited; 11th Defendant (bvi Company): Dynamic Sense Limited; 12th Defendant (bvi Company): Time Region Holdings Limited; 13th Defendant (individual): Bi Xiaoqiong; 14th Defendant (bvi Company): Worldpro Investments Limited; 15th Defendant (bvi Company): Long Chart Investments Limited; 16th Defendant (bvi Company): Chavis Investments Limited; 17th Defendant (bvi Company): Sinowell International Investment Limited; 18th Defendant (bvi Company): Chengxuan International Ltd; 19th Defendant (bvi Company): Weixiao Medical Technology Limited; 20th Defendant (singapore Company): WB International Holding Pte Ltd; 21st Defendant (hong Kong Company, Dissolved): Max Prosper Enterprises Limited; 22nd Defendant (individual): Jun Yun Bi; 23rd Defendant (bvi Company): Global Flash Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 January 2026
Case Number
HCA1417/2013
Procedural Posture
Civil Litigation: Company/fiduciary Claims (breach of Fiduciary Duty, Conspiracy, Fraudulent Trading, Dishonest Assistance, Knowing Receipt, Unjust Enrichment) / Judgment After Trial (final Judgment Dated 16 January 2026)
Outcome
Judgment in part for Plaintiffs; multiple causes of action established against primary and secondary defendants as set out below; certain claims dismissed (notably many claims against Dr Chen except unjust enrichment to extent not time-barred; some corporate defendants and Max Prosper dismissed or not pursued to...
Legal Topics
Fiduciary Duties, Breach of Trust, Unlawful Means Conspiracy, Fraudulent Trading (s.275 Cwumpo), Dishonest Assistance, Knowing Receipt, Unjust Enrichment, Limitation/discoverability, Tracing and Restitution, Remedies and Interest
Source Language
en
Company Law Equity and Trusts Insolvency Law Commercial Fraud Civil Procedure Restitution Fiduciary Duties Breach of Trust +8 more

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Parties

China Medical Technologies, Inc.

1st Plaintiff (in Liquidation)

CMED Technologies Ltd

2nd Plaintiff

Cosimo Borrelli and Chi Lai Man Jocelyn

3rd Plaintiffs (joint and Several Liquidators of China Medical Technologies, Inc. (in Liquidation))

Wu Xiaodong

1st Defendant (chairman/ceo, Former Director)

Samson Tsang Tak Yung

2nd Defendant (cfo, Former Director)

Chen Zhong

3rd Defendant (former Cto)

Zhu Feng (Charles)

4th Defendant (former VP Business Development & Compliance Officer)

Chong Wing Hip

5th Defendant

Hao Xiaoquing Allan

6th Defendant

Supreme Well Investments Limited

7th Defendant (bvi Company)

East Hope International Limited

8th Defendant (bvi Company)

Cheer Link International Limited

9th Defendant (hong Kong Company)

Innovative Technology Investment Limited

10th Defendant (bvi Company)

Dynamic Sense Limited

11th Defendant (bvi Company)

Time Region Holdings Limited

12th Defendant (bvi Company)

Bi Xiaoqiong

13th Defendant (individual)

Worldpro Investments Limited

14th Defendant (bvi Company)

Long Chart Investments Limited

15th Defendant (bvi Company)

Chavis Investments Limited

16th Defendant (bvi Company)

Sinowell International Investment Limited

17th Defendant (bvi Company)

Chengxuan International Ltd

18th Defendant (bvi Company)

Weixiao Medical Technology Limited

19th Defendant (bvi Company)

WB International Holding Pte Ltd

20th Defendant (singapore Company)

Max Prosper Enterprises Limited

21st Defendant (hong Kong Company, Dissolved)

Jun Yun Bi

22nd Defendant (individual)

Global Flash Limited

23rd Defendant (bvi Company)

Procedural Posture

Civil Litigation: Company/fiduciary Claims (breach of Fiduciary Duty, Conspiracy, Fraudulent Trading, Dishonest Assistance, Knowing Receipt, Unjust Enrichment) / Judgment After Trial (final Judgment Dated 16 January 2026)

Legal Issues

  1. 1 What duties were owed by senior officers and senior employees to CMED and CMED Tech
  2. 2 Whether defendants breached fiduciary and contractual duties
  3. 3 Whether there was unlawful means conspiracy to misappropriate company funds

Ratio Decidendi

The court found that Wu and Tsang (with Zhu) deliberately orchestrated sham FISH and SPR transactions, caused CMED/CMED Tech to pay US$521.8m, and misappropriated funds through Supreme Well and associated entities; Wu, Tsang and Zhu committed fraudulent breaches of fiduciary duty, participated in unlawful means conspiracy and fraudulent trading; various recipients (including Chong, Hao, Bi and numerous corporate entities) were held liable for dishonest assistance, knowing receipt and/or unjust enrichment as supported by tracing and evidence of knowledge or deliberate blindness; Dr Chen was not party to the fraud but was liable in unjust enrichment for traceable receipts; claims were not...

Court Disposition

Judgment in part for Plaintiffs; multiple causes of action established against primary and secondary defendants as set out below; certain claims dismissed (notably many claims against Dr Chen except unjust enrichment to extent not time-barred; some corporate defendants and Max Prosper dismissed or not pursued to...

Orders

  • Judgment for Plaintiffs against Wu Xiaodong, Samson Tsang and Zhu Feng for equitable compensation and damages related to fraudulent breaches and conspiracy totalling the sums misappropriated (US$521.8 million)
  • Judgment for Plaintiffs against Supreme Well, Mr Wu, Mr Tsang and Mr Zhu for fraudulent trading under s.275 CWUMPO (liability for US$521.8 million)