Good news from Zhiheng | Shenzhen-Hong Kong linkage breaks the cross-border difficulty: Chinese mainland entrepreneurs were successfully acquitted of money laundering in Hong Kong- Zhiheng Law Firm

When mainland Chinese nationals face criminal charges in Hong Kong, they often find themselves in an unfamiliar and complex legal environment. The differences in language and law act like invisible chasms, standing as obstacles on their path to seeking justice. Lawyers from our Qianhai branch, in collaboration with Mr. Law Pak-wai of our Hong Kong branch through cross-border dispute resolution cooperation and the deep alignment of legal frameworks across Guangdong, Hong Kong, and Macao, recently secured an acquittal for a mainland Chinese entrepreneur in a money-laundering case in Hong Kong.

Case Background

Mr. X (name withheld to protect privacy) has been charged by the Hong Kong Department of Justice with the offense of dealing with property known or believed to represent proceeds of a indictable offence (commonly referred to as money laundering) due to issues concerning the management and use of his Hong Kong bank account, and is currently being detained at the Lai Chi Kok Reception Centre in Hong Kong.

Solution

Our firm’s Qianhai Branch and Hong Kong Branch have formed a specialized legal service team and, relying on the provisions of Articles 7 and 10 of the Criminal Law, have initiated a cross-border collaborative representation procedure.

Winning verdict

Following the bail review procedure, the High Court of Hong Kong granted Mr. X bail;

After Mr. X was released on bail, following an eight-month-long defense of innocence, the Hong Kong Department of Justice ultimately withdrew the charges, and the Hong Kong court rendered a verdict of not guilty.

Building a Cross-Border Evidence Chain

The Qianhai team efficiently completed the investigation, compilation, and preservation of mainland evidence, as well as its adaptation to Hong Kong evidentiary rules, ensuring that bail-related evidence—such as Mr. X’s stable residential address, guarantor information, and financial strength—was accepted by the High Court of Hong Kong. Additionally, exculpatory evidence in Mr. X’s possession, including WeChat chat records and bank transaction statements, was likewise admitted by the Hong Kong courts.

Cross-border evidence collection and preservation, yielding multiple new exculpatory pieces of evidence.

In accordance with the investigative and evidence-gathering rights granted to mainland lawyers by laws such as the Lawyers Law of the People's Republic of China and the Criminal Procedure Law of the People's Republic of China, the Qianhai team leveraged the advantages of mainland investigation and evidence collection to comprehensively gather new evidence for Mr. X, facilitating the fulfillment of bail conditions and laying the evidentiary foundation for an innocence defense.

Coordination and Division of Labor within the Cross-Border Criminal Defense Team

The Qianhai team worked closely with the Hong Kong legal defense team, holding multiple working meetings with Mr. X to proactively prepare. While awaiting the scheduling of the hearing, the legal team had already completed the collection, organization, and analysis of all evidence in support of a not‑Innocent Defense, focusing on the key lines of argument for establishing innocence and adopting a balanced strategy of offense and defense to safeguard Mr. X’s legitimate litigation rights.

The Hong Kong legal defense team comprises Hong Kong barristers, solicitors, and registered foreign lawyers practicing in Hong Kong.

Zhiheng Qianhai Law Firm

Qianhai Zhiheng BranchResponsibilities

·Evidence investigation, collation, and preservation in mainland China

·Analysis of the Tracing of Funds Flows

·Customer Communication and Coordination Hub

·Analysis of the Legal Environment in Mainland China

·Cross-border Document Preparation and Processing

Zhiheng Hong Kong Law Firm

Hong Kong Zhiheng BranchResponsibilities

·Participate in criminal litigation activities

·Attorney Meetings and Consultations

·Development of Overseas Litigation Strategies

·Criminal Evidence Rules: Defense and Response Strategies

·Exchange and Transformation of Evidence from Mainland China

·Issue a legal opinion on mainland China law

By leveraging a real-time case-sharing system for criminal defense lawyers in both jurisdictions and holding weekly joint strategy meetings, seamless collaboration is achieved throughout the entire litigation process.

A Replicable Path for Criminal Defense

Without evidence, a defense is like a tree without roots; an acquittal is difficult to achieve. When mainland Chinese nationals are charged with a crime in Hong Kong, they may retain either a mainland Chinese lawyer or a Hong Kong‑registered foreign lawyer who practices under mainland Chinese law to collect and analyze criminal evidence, which can then be used by their Hong Kong solicitor and barrister in bail applications, bail review proceedings, not‑guilty pleas, or sentencing submissions.

Exchange and Transformation of Criminal Evidence

The admissibility of criminal evidence shall be governed by the principle favorable to the defendant; the defendant must ensure that the evidence is authentic, lawful, and relevant. Mainland Chinese lawyers have the statutory right to conduct investigations and gather evidence within mainland China, and may proactively undertake such activities, including investigating and gathering evidence from defense witnesses.

Overseas branches have broken the spell that made it nearly impossible for Chinese criminal defense lawyers to practice abroad.

Criminal cases are deeply intertwined with the freedom, family, and property of the parties involved; handling a single case means participating in a pivotal chapter of someone’s life. The severity and coercive nature of criminal penalties serve to deter crime. When mainland Chinese nationals are charged with crimes overseas, particularly given their mainland Chinese identity and the potential connections between the case and mainland China, retaining a Chinese law firm to coordinate and facilitate collaboration across multiple jurisdictions can significantly enhance the likelihood of a successful defense.

Zhiheng Cross-Border Legal Services Team: A Review of Its In-Depth Practice and Research in Cross-Border Criminal Law Services

ZHI HENG LAW FIRM

On February 21, 2025, Zhiheng Haikou will host the “Bay Area Collaboration, Leading the Future—Integration and Exchange Conference,” focusing on the expansion and cooperation of international legal services, with a particular emphasis on how Zhiheng Hong Kong can assist mainland lawyers in developing their international practice and enhancing their global service capabilities.

On February 27, 2025, the Wuhan Lawyers Association, with support from Zhiheng Wuhan, will host a special event on “Lawyers Going Global.” We extend our gratitude to Xia Xiaofei, Executive Director of the Wuhan office, for organizing and encouraging active participation by Wuhan-based lawyers.

On March 28, 2025, the Criminal Law Center of Zhiheng Headquarters organized the “Zhiheng Headquarters Lawyers’ Delegation to Hong Kong: A Journey to Deepen Legal Practice and Cooperation.” More than 20 mainland criminal lawyers attended court hearings in Hong Kong and visited Zhiheng’s Hong Kong office, expressing their gratitude to Zhang Nannan, Director of the Criminal Law Center, and contributing to the expansion of cross-border criminal defense services.

On April 2, 2025, the Shenzhen Lawyers Association hosted a training session titled “Effective Defense Strategies in Cross-Border Criminal Cases—Taking the Procedure for Mainland Residents Applying for Bail in Hong Kong as an Example.” We extend our gratitude to Ms. Mo Libing, a Registered Foreign Lawyer (RFL) in Hong Kong, for sharing key insights on bail procedures and remedies available during police station investigations in Hong Kong.

On April 17, 2025, the Guangxi Lawyers Association, in collaboration with Guangxi Dongfang Yiyuan Law Firm, will host an exchange and training session for Hong Kong‑registered foreign lawyers (RFLs) and Guangxi lawyers. We would like to express our gratitude to Song Siqi, Senior Partner, Deputy Director, and Hong Kong‑registered foreign lawyer (RFL) at Guangxi Dongfang Yiyuan Law Firm.

On April 26, 2025, Yingke Xinjiang Law Firm hosted the seminar “Seizing Opportunities in the Digital Era and Strengthening Legal Safeguards for Foreign-related Matters—Empowering Xinjiang’s High-quality Economic and Social Development through Digitalization.” Luo Baiyun, a partner at Hong Kong Zhiheng and a registered foreign lawyer (RFL) in Hong Kong, delivered a presentation on the topic “Opportunities for Mainland Chinese Lawyers to Expand Internationally,” and we extend our gratitude to Attorney Luo Baiyun.

On May 16, 2025, Zhiheng Beijing will host the “Joint Exploration of the International Development of Criminal Lawyers — China Criminal Lawyers’ Overseas Practice Sharing Session,” with special thanks to Executive Director Liu Wenlu and the following guests: Mok Lai-bing, a Registered Foreign Lawyer (RFL) in Hong Kong; Mao Lixin, Director of Shangquan Law Firm in Beijing; Hou Aiwen, Deputy Director of the Business Center at Zhou Tai Law Firm in Beijing; Ma Ziwei, Equity Partner at Yinghe Law Firm in Beijing; and Zhao Benfu, Senior Equity Partner at Zhiheng Chengdu.

On July 14, 2025, the Guiyang Lawyers Association, in collaboration with Zhiheng Guiyang, hosted a special lecture on “Chinese Lawyers Going Global/Chinese Enterprises Going Global.” Lawyers from Guiyang actively participated, jointly exploring new pathways for international expansion. Our gratitude goes to Executive Director Wang Min and his team.

In 2025, Zhiheng International Center will continue to promote cross-border legal exchanges by organizing numerous opportunities for mainland lawyers to observe court proceedings in Hong Kong. We would like to extend our special thanks to Executive Director Chai Yongxia and Deputy Director Gu Xiaoqing of the Headquarters, as well as to Song Ge, Director of Operations at the International Center, and to the professional team comprising Hong Kong‑registered foreign lawyers (RFLs) Jin Xiaomeng, Shen Shijin, Sha Jun, Jiang Lusheng, Liang Hua, Zhang Guang, and others, for their unwavering support.

Through a series of events, nearly a thousand Mainland Chinese lawyers have gained a deeper understanding of the Hong Kong legal system and common-law principles, thereby strengthening the legal safeguards for Chinese enterprises expanding overseas and pursuing cross-border business.

Zhiheng · Introduction