A century-old wealthy family that rose from Shanghai

In April 1954, Chen Guangliang appeared at the Hamburg shipyard in Germany, where he was discussing and inspecting the shipbuilding giant, Herden.

Heden led Chen Guangliang and his group to inspect a giant oil tanker that was under construction.

"Mr. Chen, look, this is the SINCLAIR PETROLORE, with a deadweight tonnage of 56089 tons. It is expected to be launched next April, at which time it will become the world's largest oil tanker. The previous record holder, the TINA ONASSIS, with a deadweight tonnage of 45270 tons (launched in 1953), was also built by our shipyard."

Looking at the SINCLAIR PETROLORE under construction, Chen Guangliang already had a plan in mind.

However, he still discussed professional techniques with Heden.

Finally, he asked, "How much does a SINCLAIR PETROLORE-type oil tanker cost?"

This 'cost' naturally refers to the cost that Chen Guangliang needs to pay.

The shipbuilding industry has low profit margins, with an estimated profit of only 7-8% per ship, but it mainly provides domestic jobs and related industrial chains.

Heden tentatively asked, "Mr. Chen, would you like to build one or two?"

Chen Guangliang shook his head.

Heden's heart skipped a beat. Was this guy about to go crazy again?

He calmed himself down and then said seriously, "Currently, the cost of building this SINCLAIR PETROLORE ship is US$1380 million for our clients. Mr. Chen should also know that the world steel price rose last year (1953), so the cost of shipbuilding also increased. You are an old friend of West Germany, so I can give you US$1350 million per ship."

A giant oil tanker is actually a Grade A office building in Central, Hong Kong.

At his peak in his previous life, Bao Yugang owned 50 giant oil tankers, making him the richest Chinese man, equivalent to fifty skyscrapers in Central, Hong Kong.

Chen Guangliang stated directly, "I can accept this price, and I need four ships to be launched within two and a half years."

Heden was shocked; this was an order for four ships, worth over $4000 million.

He couldn't help but say, "Mr. Chen, we're friends, so I feel it's necessary to remind you that Americans don't have a good impression of you right now, and are you sure you can get so many orders from Europe?"

He's right. American oil companies haven't partnered with Universal Group yet, so Universal Group's four tankers, totaling 8.5 tons, are currently unable to transport enough cargo.

But Chen Guangliang wasn't looking at the immediate future; he was eyeing the closure of the Suez Canal in October 1956. It was said that it would only take a year to recoup the cost of a new ship.

The closure of the Suez Canal not only means that Europe has to take an extra 5600 kilometers, but also that the Americas have to double their journey. This effectively doubles the global shortage of ships, but prices will not just double, but several times higher. For example, the price from Europe to the Middle East could rise from $5 to $30, as ship owners will inevitably raise prices.

On the other hand, the Cape of Good Hope has high waves and strong winds, and small vessels dare not pass through at certain times. Only medium and large oil tankers and cargo ships dare to pass; even large ships can pass through with certainty and at any time. This factor was also an important factor in the price increase and a catalyst for the later development of larger ships worldwide.

"Don't worry, Mr. Heden, I never fight a battle unprepared! My cooperation with American Oil Company will continue."

"it is good"

It makes sense. Chen Guangliang has become famous this time. As long as the price is advantageous, European and American oil companies aren't stupid. Why wouldn't they choose him?
Self-interest always comes first!

Chen Guangliang and Heden then began negotiations, mainly concerning payment.

“We can only pay 50% when the ship is launched. We hope to pay off the remaining 50% in 5 years.”

“Mr. Chen, according to international practice, more than 60% of the funds should be paid before a ship is launched. I can give you 60%, and the remaining 40% can be paid back in five installments over five years.”

Chen Guangliang smiled and said, "Mr. Heden, in this business, my reputation should be worth its price; in addition, having my ship built by you will also have an advertising effect, after all, I am now famous. All things considered, I hope you can give us another 4% interest rate discount. Let me tell you, the Japanese shipbuilding industry is rising, and their interest rate is only 3.5%."

That's true; Japan does indeed have a loan interest rate of only 3.5%, which is equivalent to the interest rate on Hong Kong bank deposits.

If Japan weren't unable to build large oil tankers, he wouldn't have considered German shipyards, given their higher prices.

After discussing it with his subordinates, Heden finally agreed!
They investigated Chen Guangliang and found that his wealth had withstood the test of war, and that Global Shipping had made a lot of money during the Korean War in recent years.

The news that Global Group has ordered four 56,000-ton oil tankers from Germany, worth more than US$40 million, is confidential. Global media only know that the German shipbuilding industry has received a large order, but do not know who the owner is.

Chen Guangliang's request for the Hamburg shipyard to keep it a secret was naturally to avoid any unforeseen complications.

Back in London, Chen Guangliang was quite popular. He hosted a party that attracted many nobles and wealthy businessmen.

Clearly, Chen Guangliang's influence has expanded many times over!
In the days that followed, Chen Guangliang spent time at his London estate with Audrey Hepburn and her two sons, Chen Wen'ou (December 1951.12) and Chen Wenxi (November 1953.11).

After having two children, Audrey Hepburn radiated maternal glow, but her appearance and figure had already recovered.

On the lawn, Audrey Hepburn took her youngest son, Chen Wenxi, then lifted her shirt, revealing her ample bosom, and fed Chen Wenxi in front of Chen Guangliang.

After several years of development and nourishment by Chen Guangliang, Audrey Hepburn's physical condition has improved a lot, including her bust, which has become much fuller, almost a C cup.

"Do you want some?" Audrey Hepburn asked playfully when she noticed Chen Guangliang staring at her.

"I'd better not fight him for food," Chen Guangliang joked.

Yes, do you want me to feed you now?

"Alright, you're getting more and more mischievous. But Audrey, we won't be having any more children, so be prepared. I'm already very content with these two!"

Audrey Hepburn loved children, that's true, but at this moment she also said very readily, "Yes, I'll listen to your opinion on that."

"What about other aspects?"

It depends on the specific circumstances.

Chen Guangliang said, "For example, how about obtaining American citizenship while also holding British and American citizenship?"

Audrey Hepburn, who had never been to Hollywood in this life, asked in bewilderment, "What's the point of American citizenship? Besides, these American country bumpkins used underhanded methods this time!"

She was referring to the high-ranking Saudi officials who falsely accused Chen Guangliang of bribing them. Clearly, Audrey Hepburn had already integrated into the Chen family.

Chen Guangliang said, “In business, enemies can also be friends. The United States is the world’s largest consumer market. I just won’t be going there for the time being, but I will soon be able to return to the American business scene. As for you becoming an American citizen, I hope that you can cooperate with Chen Wenjin, the eldest son of the second wife, to develop a ‘doll’ that can sweep the world next year. You have the face of European aristocracy, Chen Wenjin has inherited my business talent, and I am the one planning behind the scenes.”

“Chen Wenjin? That’s my son. I never thought he’d graduate from university next year!” Audrey Hepburn continued to joke.

The last time she was in Hong Kong, she paid respects to her ancestors and her mother-in-law, and all her children called her "Third Aunt".

Chen Guangliang laughed and said, "Of course, he is your son." Audrey Hepburn thought for a moment and then said, "If I do business with him, who will own the business?"

Currently, she and her two sons have approximately $500 million in assets.

But she knew that Chen Guangliang's assets were at least 5000 million US dollars, and he might even be a billionaire.

So, she also has two sons, why can't she have more wealth?

Chen Guangliang said fairly, "50%, 50%. This business is just a small project. In the future, you and my children will have more assets, so there is no need to worry that I will mistreat you three families."

"They're lovers! But we can't be left out!"

Audrey Hepburn was very concerned at this time. She would accompany Chen Guangliang to all his social engagements in Europe. For example, she attended the recent dinner as his lover, which was quite normal in European aristocratic circles.

"Um"

With so much money to be made, it's better not to concentrate it all in one person's hands, but rather to distribute it more widely.

In recent years, there have been many assets to invest in in Europe, and Chen Guangliang has always given a portion of Audrey Hepburn's house to them.

late at night.

The young Audrey Hepburn gave Chen Guangliang a very fresh feeling, and he could enjoy the pleasure of riding a foreign horse with her.

Audrey Hepburn was also enjoying the impact of a real man, and all she could say at that moment was YESYESYES!
Ping An Bank Building, Garden Road, Hong Kong.

In the office, several core senior executives of Ping An Bank, including Ye Ximing, Zhang Shounian, and Xia Gaoxiang, were communicating with Chen Guangliang.

Ye Ximing reported: "From June of this year (1953) to the end of April of this year (1954), Southeast Asian funds have been flowing into Hong Kong in large quantities. Conservatively estimated, it is around HK$500 million. And the flow of these funds is partly towards industrial investment, and partly towards real estate investment and stocks."

Chen Guangliang nodded and said, "The situation in Southeast Asia is unstable due to preparations for war (to destroy the Red camp), hence the large influx of funds into Hong Kong. These funds are being invested in industries, real estate, and securities."

Zhang Shounian, head of Ping An Investment, also said at this time: "In the first four months of this year, real estate and securities have indeed seen significant increases. If this trend continues, there will be a big surge throughout the year. The most heavily speculated stocks are land, which have seen extremely large price increases."

Chen Guangliang is partly to blame, because he has acquired a lot of prime land in the city center, which has led to a shortage of land available in the city center.

With insufficient supply, prices naturally soared, and land prices in Hong Kong were even higher in this era.

High land prices are a result of supply and demand, capital inflows, and market recovery.

However, at this time, residential units in Hong Kong still did not sell for much, with prices ranging from HK$2 to HK$3 per thousand square feet.

It's very simple; that's all the market purchasing power can offer.

On the other hand, the 'phased and tiered' model has recently become popular in Hong Kong, as some property companies without sufficient capital are giving priority to this model.

Chen Guangliang continued, "Regarding deposits, we need to attract them aggressively, without worrying about the interest payments. As for loans, we will continue to focus primarily on industry, but we can also get involved in shipping. Furthermore, based on my assessment, the real estate market will be booming for several years, and the Hong Kong government intends to improve housing conditions, likely allowing residential buildings to move towards high-rises, including industrial buildings. This is expected to happen within the next year, at which time Hong Kong will undoubtedly experience a real estate boom. Therefore, bank deposits are very important."

He set a general direction for everyone, and everyone formulated strategies based on this general direction. This is how Ping An Bank developed.

"Ok"

Soon, everyone had a clear understanding and a well-defined plan for future development.

Ping An Bank currently holds 3.2 million yuan in deposits, but Chen Guangliang and related companies have kept their deposits below 1.2 million yuan, while external deposits have reached 2 million yuan.

This is a remarkable achievement!
(In the same period of my previous life, the Bank of East Asia only had 120 million, and in this life it has even less, only around 80 million.)
Ping An Bank's external loans amount to approximately 1.6 million yuan, among which the loans to Global Group and Cheung Kong Holdings are relatively large, amounting to more than 4000 million yuan.

On this day, Chen Guangliang, Yan Kuan, and others arrived at a plot of land in Yau Ma Tei, Kowloon, from the Banyan Tree Head to the Public Square Street to Tung Tung Street.

This site, spanning over 12 square feet, was previously used by Fok Ying-tung to build 100 five-story tenement buildings, but in this life, it has fallen into the hands of the Cheung Kong Holdings.

It's very simple. The owner of this land is the Kadoorie family. After the Kadoorie family released the news, Chan Kwong-leung, who was an acquaintance, was able to buy it immediately, while Fok Ying-tung could not possibly know the Kadoorie family.

The price is also very cheap, only HK$350 million, which is less than HK$30 per square foot.

Of course, on the other hand, assuming 100 five-story tenement buildings are built, that is, 500 floors (each floor is 600 to 800 square feet), and calculated at an average price of 2, that would be 1000 million.

The land cost is 350 million, and with construction costs, taxes, and other expenses, the profit margin is limited.

Yan Kuan said from the side, "We haven't made any plans for this plot of land yet, mainly because we're considering when the Hong Kong government will start relaxing restrictions on high-end residential properties!"

As a core senior executive close to Chan Kwong-leung, he understood that the Hong Kong government would inevitably relax the height restrictions on residential buildings (currently, they cannot exceed five stories; exceeding this requires applying to the Governor and the Legislative Council, which is extremely difficult).

Therefore, since 1950, even when Cheung Kong Properties acquired land, it did not invest in reconstruction but instead treated it as land reserves.

Chan Kwong-leung said, “Your thinking is correct. The recent completion of this resettlement building is a sign that the Hong Kong government intends to improve the housing environment. I predict that new building regulations will be introduced next year. This plot of land will eventually be used to build six residential buildings, with about 1500 residential units. That’s what you call making big money!”

He wasn't very enthusiastic about real estate development during this period, mainly because a unit only cost HK$2 to HK$4, so there wasn't much profit to be made. Therefore, he basically didn't redevelop the sites he owned.

However, Cheung Kong Properties could not miss this wave of real estate boom, so the 12-square-foot plot of land in Sifang Street that they purchased at the end of last year is perfect for developing a large project.

If new land is acquired during this period, a few more can be developed, but not with great enthusiasm.

Yan Kuan and the others' eyes lit up, and he then said, "That really surprised many people. After all, it was originally only supposed to be 500 stories, but now it can have twice as many residential buildings. However, there is a problem: if there are many residential units on each floor, how will the property deeds be divided if there are multiple homeowners? In addition, there are a series of issues involving elevator maintenance fees, public lighting fees, security guard fees, garbage disposal fees, and so on. How will these costs be shared?"

Unlike older buildings, a skyscraper has a large floor area, with several units on each floor. Inside, there may be restaurants, offices, shops, parking lots, factories, as well as exterior walls and elevators.
Back in Shanghai, Chen Guangliang didn't raise the issue of shared area, but now there's no way to change it. After all, as a leader in the real estate industry, he has to be at the forefront.

"A public contract. Everyone is responsible for a certain amount of management fees. If the building collapses in the future, each unit will be returned with a certain amount of land, which will be divided into multiple shares. These shares can be distributed according to the purchase price of the unit. The ground floor units are more expensive and occupy a larger proportion, but the management fees will also be higher. Buyers must sign this public contract as soon as they purchase the unit, assuming shared responsibilities and costs."

Yan Kuan and the others couldn't help but admire them; the boss had already thought of everything.

"Alright, everyone keep that in mind. For now, Yangtze Real Estate will remain on hold!"

"Ok"

Cheung Kong Properties currently possesses a vast asset base, including not only substantial assets in Hong Kong but also significant commercial real estate holdings in Singapore and Japan. (End of Chapter)