FINANCE

Hong Kong Targets Firms Tied to U.S.- and U.K.-Sanctioned Cambodian Group

Published: Nov. 4, 2025 4:52 p.m. GMT+8

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Hong Kong’s Securities and Futures Commission. Photo: SFC

Hong Kong regulators have cracked down on local financial firms linked to Cambodia’s Prince Group, after the U.S. and U.K. sanctioned its leader Chen Zhi for allegedly running a massive international fraud network.

Hong Kong’s Securities and Futures Commission (SFC) and Insurance Authority (IA) have taken action against an asset manager, a securities company and an insurance broker connected to the conglomerate.

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Hong Kong regulators suspended licenses of three financial firms linked to Cambodia’s Prince Group after U.S. and U.K. sanctions against leader Chen Zhi.
The companies, all at one address tied to sanctioned Cheer Capital Ltd., face restrictions on asset management, securities trading, and insurance brokerage.
Two listed firms controlled by Chen stated no U.S./U.K. exposure, but following sanctions, Geotech’s director and Khoon’s auditor resigned.

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Who’s Who

Prince Group: Hong Kong regulators have taken action against local financial firms associated with Cambodia's Prince Group in response to U.S. and U.K. sanctions against its leader, Chen Zhi. These sanctions allege Chen ran a significant international fraud network. The regulatory actions include suspending licenses for an asset manager and a securities company, and updating license conditions for an insurance broker linked to Prince Group.

Mighty Divine Investment Management Ltd.: Mighty Divine Investment Management Ltd. (神通投资管理有限公司) is a Hong Kong-based asset manager. Its license has been temporarily suspended by Hong Kong's Securities and Futures Commission due to its connection with Cambodia’s Prince Group and its sanctioned leader, Chen Zhi. The company shares an address with other affiliated entities.

Mighty Divine Securities Ltd.: Mighty Divine Securities Ltd. (神通证券有限公司) is a Hong Kong securities company whose license for securities trading has been temporarily suspended by the Securities and Futures Commission (SFC). This action is part of a broader crackdown on firms linked to Cambodia's Prince Group, whose leader, Chen Zhi, was sanctioned by the U.S. and U.K. for alleged fraud. The company shares an address with other entities connected to Prince Group.

Mighty Divine Insurance Brokers Ltd.: Mighty Divine Insurance Brokers Ltd. (神通保险经纪有限公司) is a Hong Kong-based insurance broker connected to Cambodia's Prince Group and its leader, Chen Zhi. The U.S. and U.K. have sanctioned Chen Zhi for allegedly running an international fraud network. Hong Kong's Insurance Authority has updated the firm's license conditions, barring it from regulated activities or handling client funds without prior written consent or meeting all regulatory requirements.

Cheer Capital Ltd.: Cheer Capital Ltd. (志源集团) is a company that owns the building where three firms linked to Cambodia's Prince Group are located. This company is also on the U.S. sanctions list due to its connection to Chen Zhi, the leader of Prince Group, who is accused of running an international fraud network.

Geotech Holdings Ltd.: Geotech Holdings Ltd. is one of two Hong Kong-listed companies controlled by Chen Zhi, leader of Cambodia's Prince Group. Chen resigned from all his posts at Geotech in July. On October 15, Geotech stated that it had no clients or suppliers in the U.S. and no assets in the U.S. or U.K., and did not expect a significant adverse impact from sanctions. However, an executive director resigned for personal reasons after the sanctions were announced.

Khoon Group Ltd.: Khoon Group Ltd. is one of two Hong Kong-listed companies controlled by Chen Zhi, the subject of U.S. and U.K. sanctions for allegedly running a massive international fraud network. Following these sanctions, Khoon Group Ltd.'s auditor, RSM Hong Kong, resigned citing a "fundamental conflict with its ethical obligations."

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What Happened When

July 2025：: Chen Zhi resigned from all posts at Geotech Holdings Ltd.

Oct. 15, 2025：: Geotech Holdings Ltd. and Khoon Group Ltd. issued statements about not having clients or suppliers in the U.S., and not expecting significant adverse impacts from sanctions.

Oct. 28, 2025：: The Insurance Authority updated the license conditions for Mighty Divine Insurance Brokers Ltd., barring it from conducting any regulated activities or handling client funds without prior written consent or until all regulatory requirements are met, effective on this date.

After Oct. 15, 2025：: An executive director at Geotech Holdings Ltd. resigned for personal reasons following the sanction announcements.

After Oct. 15, 2025：: RSM Hong Kong resigned as Khoon Group Ltd.'s auditor, citing a fundamental conflict with its ethical obligations due to U.S. and U.K. sanctions.

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