HONG KONG, October 5, 2023 – Prominent Hong Kong actress Cecilia Cheung appeared in the High Court today, testifying about the circumstances that led her to sign an eight-year management contract with ex-manager Yu Yuk-hing and his company, AEG Entertainment Group Limited, a deal now central to a multi-million-dollar lawsuit. The ongoing legal battle sees Yu and AEG seeking more than HKD 10 million (approximately USD 1.28 million) in compensation from the actress, claiming breach of contract.
During her testimony, Cheung, who began her career in 1998 at age 18, focused on a period of unexpected financial crisis in 2011 shortly before she entered the contentious business relationship. She described how the final payment for a luxury apartment purchase in Mid-Levels, Hong Kong, ran into difficulties, leaving her short by HKD 40 million. This sudden shortfall forced her to desperately seek external financing.
Cheung recounted approaching three individuals in the entertainment industry for assistance. After failing to reach an agreement on management contract terms with the first two prospective partners, she finally turned to Yu Yuk-hing, with whom she subsequently signed the lengthy eight-year agreement.
Financial Scramble and Management Trust
The court heard details surrounding the 2011 property transaction. Cheung purchased a unit in the Century Tower for HKD 128 million. She revealed that she relied heavily on her long-time assistant, Chau Ching-yee, for managing her daily finances, stating she has a profound aversion to numbers.
“The numbers one, two, three, four, five, six, seven, eight—when I think of eight, I feel fear,” Cheung told the court, underscoring her dependence on the former assistant for handling everything from utility bills to Octopus card top-ups, and even knowing her bank card passwords.
The actress stated she assumed her finances were sufficient for the HKD 128 million purchase until Ms. Chau informed her that the necessary funds for the closing payment were “stuck,” requiring an immediate HKD 40 million injection. This unexpected predicament, she explained, completely altered her plans, forcing her to consider signing a management contract in exchange for financial assistance.
Presiding Judge O’Young Ho-wing inquired if Cheung had specific plans that “failed to mature,” comparing the situation to a hoped-for outcome “that didn’t boil down,” a characterization Cheung affirmed.
Contractual Obligations and Managerial Relationship
Cheung’s testimony also touched on prior management arrangements with industry figures such as Chu Wing-lung and Tiffany Chen, the wife of film producer Charles Heung. When cross-examined by the plaintiff’s barrister, Stephen Yim, about the significance of the contract’s fixed term, Cheung emphasized that integrity mattered more than the duration or monetary value of any agreement. She added that she would view a trustworthy business partner as family.
The plaintiff’s legal team asserted that Cheung referred to Yu Yuk-hing as “godfather” (契爺) and that he had a positive relationship with her father. Cheung strongly denied using the term “godfather,” stating, “Everyone says they know my father; you can read about it in the newspapers.”
She maintained that she entered the agreement with Yu in July 2011, making her an artist under New Asia Entertainment Alliance Group, purely based on her trust in him, a relationship that began to develop while they worked together on the film The Lion Roars 2 in mainland China.
Following the lunch recess, the legal representation for the plaintiff changed, with barrister Stephen Yim stepping down and Deputy Barrister Tennyson Tang taking over the cross-examination, signaling a shift in the courtroom proceedings. The trial is expected to continue as the court seeks to unravel the complex financial and professional dynamics that underpinned the disputed 2011 contract.
