Two men have denied dealing in more than $78 million alleged to have been laundered between Hong Kong and Australia over the past two years. Tsing Yi merchant Chen Zhenchu, 43, and Lee Tak-shing, 59, a watchman from Wong Tai Sin, appeared in Eastern Court yesterday charged with dealing with property known or believed to represent proceeds of an indictable offence. Principal Magistrate Ian Candy adjourned the case until April 14. The men were charged after Hong Kong and Australian police smashed a money-laundering syndicate suspected to be linked to a drug ring and arrested three men and a woman simultaneously in Hong Kong and Australia. Police said local officers worked closely with their Australian counterparts in the investigation, which was made public on Tuesday when the arrests were made. As well as the two men who appeared in court yesterday, a 39-year-old woman was arrested in Hong Kong and an ethnic Chinese man, also 39, was arrested in Australia. She has been released on bail, while the man arrested in Australia has been charged with money-laundering. Police seized a total of $70,000 and A$10,000 ($61,000) during the operation. The two Hong Kong men are alleged to have laundered $78.6 million between January 1, 2003, and May 20 last year.