The Chinese government is trying to retrieve money and assets invested in New Zealand as part of what it believes was a "trans-national money laundering scheme" run by Liu Guiting, the former head of China's first publicly listed rail company, reported TVNZ.

Liu gained New Zealand residency in 2002 after he deposited US$1.44 million in an ASB bank account and bought property in New Zealand through companies belonging to his wife and daughter.

He is now serving life sentence in China after being convicted last year of misappropriating about US$15.12 million of public funds, but the Chinese government believes he could have embezzled up to US$360 million.

Liu's wife, Limin Yang, and daughter, Jasmine Liu, live in Auckland and are under investigation for suspected money laundering, according to Chinese justice ministry documents.

On Friday Yang appeared in the High Court at Auckland in an ongoing civil case she has brought against Paul Chen, a former business partner she said breached fiduciary duty and misappropriated assets of her companies.

Chen is being held in China as a witness against Liu.

A Chinese government lawyer sat in on the hearing and confirmed that his government was interested in learning what happened to the stolen rail company money.

Up to US$9.36 million may have been invested in New Zealand.

In court, Yang confirmed her husband had transferred money to New Zealand that was used to purchase an US$583,200 apartment in Albert St, Auckland, and US$1.44 million to buy the Kiwi hotel and three other properties in Rotorua.

Under cross examination she said she did not know exactly where the money came from.

An affidavit to the court says that the Chinese ministry of justice wished to interview Yang and her daughter "over the evidence which has been uncovered linking them to the movement and control of the missing money".