A century-old wealthy family that rose from Shanghai

In early January 1949, the vast Huaihai Plain changed hands, and the entire army of Du Yuming, Huang Baitao, and Huang Wei was wiped out.

Wealthy people in Shanghai, like frightened birds, abandoned their homes and fled to Hong Kong and Taiwan.

Kai Tak Airport was packed with people from the mainland. Among them were once prominent officials, businessmen, or artists who, with fear in their hearts and carrying their valuables, hurriedly fled south.

"Moracha" (referring to Indian soldiers) directed people disembarking from the plane to form long lines and receive immigration passports, which were uniformly issued by a British agency.

The simplicity of the procedures and the smoothness of the process delighted everyone.

After all, for Britain, those who come to Hong Kong now are all wealthy people, and their arrival is entirely beneficial to Hong Kong's development.

Many of those who received their immigration passports took out a newspaper from their pockets and headed toward the same destination—the city of Changjiang Real Estate Leasing Department.

Near Kai Tak Airport, people who came here were taken aback. So many people saw the advertisement in the newspaper and couldn't help but start discussing it.

"Isn't this Cheung Kong Real Estate the real estate company of Mr. Chen Guangliang? Back then, Cheung Kong Real Estate was a top-notch real estate company in Shanghai, pioneering the 'land leasing and building' and 'layered and phased' model."

"Yes, I rented a house from Cheung Kong Property back then. I did get my principal back, but the money had depreciated to almost nothing. But at least I lived there for twenty years, so it was still a good deal. I never thought I'd have to rent a house from Cheung Kong Property again now."

Life seems to be a cycle, and after many twists and turns, these people are now renting Chen Guangliang's house again.

“You’re nothing! I bought several properties from Yangtze River Real Estate, and I didn’t have time to deal with them this time, so they all stayed in Shanghai.”

"Don't worry, we'll go back sooner or later, and then we'll take those houses back."

"That's true"

At this time, many people were simply using Hong Kong as a 'stepping stone' to either move further overseas or prepare for the right opportunity to return to the mainland.

"Sigh, it seems I can't get rid of Yangtze River Real Estate. It's a pity they only rent now, not sell. Maybe I'd be willing to buy!"

"But the rent is really expensive! HK$180 per month, plus a transfer fee of HK$6000, which is enough to rent an entire floor. My goodness, there's even a transfer fee."

At this moment, the staff of the leasing department of Yangtze Real Estate were enthusiastically introducing the property to everyone.

"Please don't think it's expensive. You should know that compared to other rental properties in Hong Kong, Cheung Kong Property's rents are not considered high. However, our properties are all newly built and fully equipped with modern amenities such as running water, flush toilets, and gas stoves. You can move in with just your belongings. Moreover, Cheung Kong Property's after-sales service is absolutely backed by the reputation of a large corporation."

These people already trusted Yangtze Real Estate, and upon hearing this introduction, they no longer cared about finding a cheaper option; they just wanted to rent a place as soon as possible and settle down.

"I'd like to rent one, but could you show us around?"

"Yes, it is possible."

Outside the Yangtze Real Estate store, there were already car services taking people to see properties in batches, usually two or three in the same area.

At that time, although there were many new homes in Hong Kong, they were still not enough for the large number of wealthy people who came to Hong Kong; not to mention, Cheung Kong Properties' near-monopoly determined the market's pricing power.

A floor of a house costs HK$180, plus a transfer fee of HK$6000, but it's actually not expensive. The selling price of such a floor can reach HK$2.5, so the rental income would mean it would take 9 years to break even, including the transfer fee.

The main reason is that it is subject to the Hong Kong government's control over rents; otherwise, the rent could be set at HK$300 per month.

Among those looking to rent, Bao Zhaolong (father of Bao Yugang) and some of his family members arrived in Hong Kong first. He took a fancy to a one-story Western-style house in the Mid-Levels. However, the rent was painful for him, at HK$450 per month and a transfer fee of HK$18000.

However, for the safety of his family, he decided to choose the villa on the hillside.

In the conference room of Yangtze Real Estate, more than a dozen senior executives were having a meeting, including deputy managers Yan Kuan and Wu Xinhe, as well as Lu Yuantai, general manager of Poly Construction, and others.

People like Yan Kuan, Wu Xinhe, and Lu Yuantai are all veterans of twenty years. Of course, after coming to Hong Kong to develop their careers, they have also brought in a lot of fresh blood. Half of the senior staff in this office are from Guangdong.

In Chen Guangliang's company:

He primarily used ships from the Yangtze River Delta region for shipping and trade, especially those from Ningbo. Of course, as his business developed, he was less limited, as his fleet expanded rapidly.

When real estate and finance companies come to Hong Kong to develop, they mainly recruit Cantonese people, since they have local advantages; of course, they don't deliberately differentiate between them, but the results are similar.

In industry, the management and technical workers are mainly from Shanghai, because their skill level is much higher than that of the Cantonese; they are not on the same level. For example, the products made by the management and technical workers in Shanghai can be sold overseas, but the industrial level of the Cantonese can only be sold within China. That is the difference.

Yan Kuan reported, "Based on the current situation, we expect our satisfaction rate to reach over 95% in the first half of the year. And currently, all of Changjiang Real Estate's phased tasks have been completed."

Chen Guangliang nodded. Currently, Cheung Kong Properties holds land covering an area of ​​over 150 million square feet. On these lands, Cheung Kong Properties has built over 960 buildings, the vast majority of which are 5-story buildings, with a small number being 3-4 story buildings, totaling approximately 4600 stories.

The annual rent alone is conservatively around HK$400 million.

These buildings also have another characteristic: many of them are adjacent to each other, which facilitates the future consolidation of land and the construction of high-rise buildings.

Subsequently.

Wu Xinhe stated, "Changjiang Real Estate has repaid all its debts, and since December of last year, every penny of rent has come from its own funds."

The total post-war investment reached US$900 million (excluding pre-war investment). After Chen Guangliang contributed US$600 million, he was able to utilize the HK$700 million in forced-signing funds from HSBC, plus the rent from previous years, which was just right!

Next.

Lu Yuantai said, "Currently, in addition to participating in the construction of the 'Ping An Bank New Building,' Poly Construction has also begun to undertake construction projects in Hong Kong, and business is progressing smoothly."

Among the construction companies of Ping An Bank's new building, Poly Construction was only one, but an American architectural firm was also invited to serve as a consultant, and a British-funded piling company was also involved.

Now that Yangtze River Real Estate's construction activities have ended, Poly Construction can only take on external business and continue to develop.

Chen Guangliang continued, "Okay, the main business of Yangtze Real Estate going forward is collecting rent. This is not a simple business, and we will confidently discuss the relevant work today."

Everyone nodded, and then each person offered their suggestions to improve the relevant work of the leasing department.

Yan Renmei was also present at today's meeting, though she didn't speak but instead took notes and listened. But no one dared to underestimate this 'Ms. Yan'; since the boss wasn't in Hong Kong, they all reported their work to her.

After the meeting, Chen Guangliang took Yan Renmei back to his office.

You can sit in my seat.

After arranging Yan Renmei to sit in his "boss chair," Chen Guangliang sat at his desk and started chatting with her.

Yan Renmei proactively stated, "I know that the next phase for Cheung Kong Properties is to gradually redevelop its land holdings if the Hong Kong government allows the construction of high-rise buildings."

Chen Guangliang said:
"It's not perfect yet."

First, how should we use the rent generated during this period?

Secondly, with so much land, how many cycles would it take to rebuild it?
Finally, once the buildings are completed, should they be sold or leased? What should the rent-to-sale ratio be? And how should the profits be invested?

Yan Renmei immediately said:
"I'm sure I can't match your long-term planning as thorough and detailed as yours, but I can offer my opinion. First, regarding the rent during this period, I've decided that we should naturally acquire properties overseas, especially since you recently bought two properties in Ginza, Tokyo, Japan."

Secondly, regarding the construction period you mentioned, the slower the better. You once said that our family is determined to develop based in Hong Kong. Therefore, these construction periods will certainly take decades, depending on the specific circumstances.

Regarding the last question, I think a 50/50 rent-to-price ratio is about right. The profits can be invested in Hong Kong commercial real estate or other similar properties, or further invested overseas.

It's pretty good. Yan Renmei's idea is that if she were to manage Cheung Kong Properties in the future, it would still become a leading real estate company in Hong Kong. Everyone can take on the challenge.

The sheer determination to develop in Hong Kong is enough to outperform the vast majority of businessmen. In every property crisis in Hong Kong in the past, developers were either too indebted or lacked confidence during the crisis, so only a few companies ultimately succeeded.

But clearly, Cheung Kong Property is no longer prone to making mistakes, even in Chen Guangliang's absence.

"Very good, you're mostly right. Let me explain in more detail:"
Firstly, the rental income during this period can be used to invest in commercial land in Singapore, such as Orchard Road. We can also continue investing in land in Ginza, properties in the United States and Canada, and so on. Our investment locations are primarily politically stable, such as Japan, the United States, and Canada, or places where Chinese people have a predominantly Chinese population, such as Singapore.

Secondly, the construction period should be as slow as possible. After all, we are a large company and there is no need to rush. Forty or fifty years is normal, and we can acquire new land during that time.

Finally, the completed high-rise residential buildings could ideally be sold 70% and rented out 30%, or even sold more, but the remainder could be transferred to commercial real estate and retained as luxury residences for long-term rental income for the family.

Yan Renmei nodded and said, "I understand. But after all that, are you coming to America with me this summer?"

At this point, Yan Renmei was the one everyone was looking forward to.

Chen Guangliang said, "Of course, we can go separately and come back separately."

We'll travel by plane, but we'll be separated.

"Um"

On January 20, Song Ziwen went to Nanjing to meet with the Commander-in-Chief.

The following day, the Commander-in-Chief stepped down, and Song Ziwen also announced his resignation as Chairman of Guangdong Province.

On January 24, Song Zaiwen and his wife flew to Hong Kong.

At this time, Song Ziwen did not plan to go to the United States; he still held a glimmer of hope for the Nationalist government.

The Song couple stayed in a suite at the Peninsula Hotel.

At Song Ziwen's invitation, Chen Guangliang and Yan Renmei gladly attended the meeting, after all, the two had once been 'friends'; although this friend once had great ambitions, to the point of wanting to take over Chen's enterprises such as Ping An Bank and Xinfeng Textile.

In the suite at the Peninsula Hotel, the two met twice. Chen Guangliang was clearly more imposing, while Song Ziwen was more like a "spendthrift dog".

"When did you realize that the Nationalist government had no hope?"

The first thing Song Ziwen said upon meeting was very straightforward, which surprised Zhang Leyi. When did her husband become so guileless?

In fact, as outstanding figures in the economic field, Song Ziwen and Chen Guangliang were subconsciously somewhat in sync.

Chen Guangliang also frankly stated: "My first day stepping into Shanghai after the war..."

Song Ziwen immediately understood that the 'personnel who took over' at that time were of varying quality, which probably made this person notice something. But his insight was too sharp.
"There is still hope for the Nationalist government; perhaps it can divide the country along the Yangtze River and govern accordingly!"

"I do not want China to be divided."

Song Zaiwen added, "Then Hong Kong will also be lost, and all your hard work will become someone else's gain."

Chen Guangliang then said, "Then we'll meet again in America!"

Song Ziwen got angry and said, "I will not go to America. You underestimate the Nationalist government. The Nationalist government army can definitely divide the country along the river and even launch a counterattack!"

Chen Guangliang smiled and did not argue.

In less than six months, this person will abandon his 'master' and go to the United States alone, never to return to the land of China again.

The two seemed to have nothing else to talk about, and the meeting ended unhappily.

Zhang Leyi said with dissatisfaction, "You invite people over, but you don't treat them with courtesy. What's the point of all that?"

Song Ziwen said, "We don't need it! I can see that if he were in my position, he would do the same thing (establish a large trust organization to control China's economy)."

Zhang Leyi asked curiously, "Why?"

Song Zaiwen said, "Because apart from not participating in the mainland government, isn't he also building a large trust in Hong Kong? He's betting that the other side won't take back Hong Kong, so he can use Hong Kong as a base to develop his business empire. Perhaps he also hopes to become a global businessman, after all, he's still young enough."

If Chen Guangliang heard Song Ziwen's words, he would definitely like Song Ziwen even more.

In fact, although the two are in different positions, they share many similar ideas.

Song Ziwen wants to be China's 'Morgan', and Chen Guangliang also wants to be a 'world businessman'!
The Spring Festival is approaching.

Unlike many wealthy people who feel they have left their hometowns, the Chen Guangliang family has integrated into Hong Kong. They have been living in Hong Kong for almost eight years now.

So this year, their whole family spent the Spring Festival together, and it was still a lively and joyous occasion.

Apart from Chan Kwong-leung's eldest son, Chan Man-kit, who is studying in the United States, the rest of the family members are in Hong Kong. His younger brother, Chan Kwong-chung, and his family of five also celebrate the Lunar New Year together, but they will not stay overnight.

Chen Guangliang felt a sense of satisfaction. Of course, for the next seventy years, he would continue to expand the territory and protect the family.

"Brother, after the Spring Festival, I plan to take Xiuying to England. Mom will take care of the child."

In the living room, Chen Guangcong reported his itinerary to his elder brother.

At this time, Chen Guangcong was Chen Guangliang's main assistant and partner in shipping and trade, and also played a certain 'stabilizing' role in the entire Chen family.

"Sure, but be careful of the smog in London during winter. Also, do your research on the environment there, so your children can study in the UK in the future."

"Yeah, I took note of it!"

The younger brother, Chen Guangcong, and his family intend to obtain dual British and Hong Kong citizenship in preparation for future family division and to facilitate their shipping business.

Chen Guangcong only has three children, and only one son, so he will naturally do his best to raise Chen Wenbo.

According to Chen Guangliang's plan, by the late 1950s, the two brothers would separate and start their own businesses, with Chen Guangcong also going to become an independent shipowner in Hong Kong. This was mainly because Chen Guangliang's second son from his first wife, Chen Wenming, and his nephew, Chen Wenbo, might not want to work for the same company in the future.

This year, Chen Guangliang also plans to take Yan Renmei on a vacation to the United States, and they may go on overseas vacations every year from now on, gradually becoming less and less hesitant. (End of Chapter)