A century-old wealthy family that rose from Shanghai

In early February 1956, a week before the Spring Festival, Chen Guangliang returned to Hong Kong from Europe.

Currently, the Chen Group has investments in many countries and regions, including the United Kingdom, Monaco, the United States, Brazil (copper mines), Sing Tao Daily, Malaysia, Thailand, Japan, and Hong Kong.

This can be considered as having taken the initial steps into a global investment strategy, and of course, we will continue to maintain our strategy of being based in Hong Kong and developing globally.

Global Group Building.

This is also the administrative headquarters of the Yangtze River Industrial Group, which includes companies such as Xinfeng Textile, Rongchang Heavy Industry, Huatai Plastics, Hehe Zipper, and Rebecca Wigs.

Last year, the entire Cheung Kong Industrial Group generated HK$2 million in output value, accounting for 5% of Hong Kong's industrial output value; among them, Sun Fung Textile Group accounted for more than 10% of Hong Kong's textile industry; Wah Tai Plastics accounted for about 20% of Hong Kong's plastics industry; and Rebecca Wigs accounted for 30% of Hong Kong's wig market.

In terms of profit, the entire Cheung Kong Industrial Group generated a net profit of just over 2000 million, nearly double that of Cheung Kong Holdings.

In the conference room, Guo Deming reported on the work using data: "Last year, the total export value of the plastic flower industry in Hong Kong was HK$5200 million, and we accounted for 41% of the share (the plastic industry includes not only plastic flowers, but also plastic products, toys, etc.). The total export value of wigs in Hong Kong was HK$3600 million, and we accounted for 30%. These two emerging industries brought HK$8800 million in exports to Hong Kong last year, and this year the growth trend of plastic flowers is even better."

Chen Guangliang nodded slightly in agreement, agreeing with this viewpoint—plastic flowers were expected to exceed 100 million in total exports next year (1957), but that was not the main point. Conservatively, they were expected to reach their peak in the early 1960s, becoming one of the top five industrial categories in Hong Kong.

Wigs are a bit less profitable, and it's estimated that the growth rate won't be significant in the next few years, probably around 50 million. However, in the early 1960s, some 'trends' were popular in Europe and America, and it wouldn't have been a problem for the total output value of wigs to exceed 100 million.

Then, Chen Guangliang said, "Japan used six transistors last year to produce the Sony T55. I think it's feasible for Hong Kong to purchase transistors from Japan and produce its own radios. So, I'm thinking of setting up a company called 'Midea Electric Appliances,' with radios and electric fans as the initial two products. You guys assemble the team, and I'll take a look later!"

Guo Deming and other senior executives of the group quickly replied, "Okay."

Chen Guangliang also knows that Hong Kong has a shortage of talent, so it can only produce products with low technological content. However, he hopes to accumulate enough experience in order to change this situation in Hong Kong.

In its previous life, Hong Kong's electronics industry also began by manufacturing Sony radios for Japan. At that time, in order to avoid British tariffs, Japan specifically manufactured Sony radios in Hong Kong, a member of the Commonwealth. Two years later, when Sony moved its factory to Ireland, Hong Kong was already able to assemble radios. Even if Japan stopped selling transistors to Hong Kong, Hong Kong could still purchase them from Britain.

Chen Guangliang, of course, was not interested in the profits from assembling radios. He hoped to accumulate the technology and experience in this area to lay the foundation for independent research on portable music player products in the future.

As for electric fans, this laid the foundation for future electrical appliance production.

Then, Chen Guangliang added, "I travel abroad frequently. Although I don't have to carry my own luggage, I've found that current suitcases are quite inconvenient. So I plan to have Xinfeng Textile Group establish a sub-brand specifically for the research and development and production of suitcases. The brand will be called Travelpro. I've already completed the design draft for this suitcase; it has four 360° swivel wheels and a retractable handle."

Everyone looked on with curiosity, and found it quite novel and innovative.

This tiny invention actually came about twenty years later than the moon landing!

Zhang Fangshuo, general manager of Xinfeng Textile Group, immediately said, "It just so happens that Crocodile Garments can produce leather luggage, so we can put the Travelpro brand under Crocodile Garments."

Chen Guangliang immediately said, "No, the Travelpro brand should be listed alongside Lacoste Garments, under the 'Apparel Brand Department' of Xinfeng Textile. So, let's register a company called 'Uniqlo Apparel Influence Company,' and this company will manage its apparel brands from now on!"

"Okay, I'll arrange it!"

It's clear to everyone that the boss wants to expand into multiple areas of the industrial sector, engaging in both large and small businesses. Moreover, he's always the first in Hong Kong to venture into any particular industrial product category.

When Sin Fung Textile entered Hong Kong, it was actually the first to try something new. At least Sin Fung Textile has a real record in Hong Kong and is the only company that can lead the rise of Hong Kong's textile industry.

The same is true of Rongchang Heavy Industry, which was a true smelting factory in Hong Kong, one of the earliest shipbreaking companies, and one of the machinery companies; of course, Hong Kong's shipbuilding industry has always been quite strong (Swire Jardine Matheson), and at this time it still had tens of thousands of workers.

Before the Lunar New Year, Chen Guangliang, along with Yan Renmei and Jiang Meiying, arrived at Nos. 80, 79, and 77 Deep Water Bay. The three brand-new garden villas had all been built and decorated.

79 Deep Water Bay will serve as the ancestral home of the Chan family (the first branch of the Chan family); 80 Deep Water Bay will be the residence of Jiang Meiying, the second branch of the Chan family; and 77 Deep Water Bay will be the residence of Audrey Hepburn, the third branch of the Chan family, although Audrey Hepburn will not stay there for long each year.

As for the villas in Repulse Bay, they can only be used for vacation purposes.

Villa No. 79 in Deep Water Bay is a modern three-story villa as the main building. Once inside, the furniture has already been arranged.

"It was completed in five years, and everything is quite satisfactory!" Chen Guangliang said with satisfaction.

Jiang Meiying said with a smile, "It's just in time for Wenjie's wedding. Are you moving in now, or are you planning to move in earlier?"

The eldest son will definitely live with his parents.

Therefore, 79 Deep Water Bay is not only the ancestral home and residence of Chan Kwong-leung and Yim Yan-mei, but also the new home of Chan Man-kit and Chuang Yuen-chen.

Chen Guangliang said, "We won't wait for them; we'll move in around the end of this year!"

Jiang Meiying said, "Then I'll move next year!"

Yan Renmei teased, "What, are you worried I'll cause trouble?"

Moving into the new house before the older family does seem like a good idea!

Jiang Meiying replied, "Tch, I just thought it would be good to let this place get some fresh air."

That's what they say, but in reality, it's about respecting Yan Renmei's status as the first wife and reducing conflict. Only in bed would Jiang Meiying ride on top of Yan Renmei, without any distinction of rank.

Chen Guangliang did not participate in their conversation. He was thinking about a question: those villas in the Mid-Levels area will definitely be replaced by high-rise luxury apartments in the future; where will his three sons and one daughter, who will live in Hong Kong permanently, and who will be the remaining four children with Yan Renmei, live in the future?

He quickly smiled and thought, "Why think so much? There will be plenty of luxury residential sites in Hong Kong in the future, such as Shek O and The Peak, which are all good choices."

The children of the second wife don't need to buy a very luxurious villa in Hong Kong; a detached villa will suffice in the future.

After the Spring Festival.

One day, Yan Kuan reported something to Chen Guangliang: "Boss, at the current government land auction, many real estate developers are 'biting off' the bidding. If we don't participate, they'll drive up our price!" Chen Guangliang asked, "What does 'biting off' mean?"

Yan Kuan introduced:
"For example, if the Hong Kong government wants to auction off a piece of land, A might bid alone, B might also bid alone, C might bid in groups of several people, those with financial strength might bid alone, and those without financial strength might bid together in groups of several companies. D has no intention of buying the land, but still comes to join the bidding. This piece of land originally required a bid of 1000 million, and people without that 1000 million generally wouldn't dare to bid; because if they actually won the bid, what would they do if they couldn't come up with the money? So, some people would find backup, calling on aunts and cousins."

Alright, let's start the bidding. If four parties, A, B, C, and D, are bidding, starting with 500 million, then 600 million, then 700 million, and when the price is close to that, some of them will discuss on the spot, "Why don't we bid back and start the bidding again?"

So everyone compromised. When one party bid 750 million, the other three parties stopped bidding, and the deal was struck at 750 million.

Afterwards, parties A, B, C, and D found a place to sit down and put the land up for bidding again. Then, when the price reached 900 million, parties C and D stopped bidding, leaving only parties A and B. The difference of 900 million between 750 million and 150 million was split equally among the four parties, with each receiving a little over 30.
Next, A and B bid again. A bid 950 million, and B might give up. The land was eventually won by A for 950 million, and the difference of 950 between 900 million and 50 million was split equally between A and B, with each party receiving 25.

"The whole process is like dividing a pie into smaller pieces. You get a piece, someone else gets a piece, and everyone benefits. A wins the land at a lower price, and the other three parties also benefit. Of course, there are exceptions. For example, A, B, C, and D are a group, but suddenly E comes out and keeps bidding high, driving up the land price. As a result, the person who finally wins the land has to pay a higher price."

After hearing this, Chen Guangliang said directly, "We will not participate in the food business. Let them take over if they want. As long as there is a profit, we will acquire three or four plots of land to start construction in the first half of this year."

"Yes, they invited us, but I didn't agree."

Chen Guangliang then said meaningfully, "The high land prices are also beneficial to our Cheung Kong Holdings Group, and they can also weed out a number of unqualified real estate companies!"

Yan Kuan was surprised. So what was the boss 'scheming' about now?
Could it be that Hong Kong's property market is at risk of a sharp decline?

Chen Guangliang did have this mentality, but he didn't actively scheme against anything; he was simply involved.

Since Cheung Kong Holdings holds a large amount of land, and the New Territories are not developing real estate at this time, resources in Hong Kong Island and Kowloon are scarce, so land prices are definitely higher than in the previous life.
Secondly, the presence of Chen Guangliang weakened the power of figures like Fok Ying-tung, Liao Baoshan, Zhang Yuliang, and Hang Seng Bank (which also invests in real estate), thus reducing their ability to withstand risks.

Finally, Hong Kong's economy is better now than in its previous life, so land prices have naturally risen even more sharply.

This wave of the 'real estate crash (1958)' will surely cause more people to go bankrupt. People like Li Kangjie and Chen Detai may have completely collapsed. Others will become more cautious about real estate, such as He Tian of Hang Seng Bank, Liao Baoshan of Liu Chong Hing Bank, and Zhang Yuliang.

In fact, the four great families of the past have already suffered varying degrees of damage; it all depends on their future methods!

In a private room of an upscale restaurant in Wan Chai, a group of heads of Hong Kong's "large" Chinese-owned real estate companies were having a meal.

This includes Li Kangjie of 'Hong Kong and Macau United Real Estate', Guan Qiming of Qiaofeng Real Estate, Chen Detai of Dachang Real Estate, Liao Baoshan of 'Liu Chuangxing Bank', and Fok Ying-tung.

After finishing the "small meal" of a plot of land, everyone started chatting.

Li Kangjie said with dissatisfaction, "This Cheung Kong Group is too domineering. They didn't participate in our 'eating cake' and they also auctioned off the North Point land of our Hong Kong and Macau United Real Estate Company. They simply don't take us seriously."

He was also from Shanghai and came from a construction background. Last year, he saw that Fok Ying-tung was making a lot of money in real estate, so he wanted to team up with Fok Ying-tung to do real estate business together. Fok Ying-tung thought that cooperating with Li Kangjie and others might cause many problems, so he politely declined their request.

Li Kangjie came up with another idea: a "grand alliance" to unite businesses from Hong Kong and Macau into a single company for real estate development. His persuasive skills convinced Macau tycoon Ho Yin and others to join. Henry Fok was naturally among those Li Kangjie actively lobbied. Although Fok disapproved of the "grand alliance," believing it would cause many problems, he ultimately invested some money.

Huo Yingdong, who once worked at the Rongchang Heavy Industrial Base, said, "It's normal to not take them seriously; it would be abnormal to take them seriously. The combined strength of Cheung Kong Holdings is not enough to defeat them."

Everyone nodded!

Li Kangjie was aware of the Chen family's power, but he said unwillingly, "With them doing this, how much of the pie are left for us?"

Cutting the cake?
Who the hell wants to give you points?

Chen Guangliang's intention in this wave was to bring down some uneven real estate companies.

Therefore, Cheung Kong Holdings will set a high price at auctions, driving up Hong Kong land prices to very high levels.

This will drive those who buy land with only 10% of the funds into bankruptcy.

Li Kangjie complained a few times, but finding no one to agree with him, he could only awkwardly stop talking.

Two months later, Cheung Kong Holdings released two more buildings in the 'Man Wah New Village' on Public Square Street, totaling just over 400 residential units.

Two months ago, on New Year's Day, the news that two buildings belonging to Cheung Kong Holdings sold out in 24 hours caused a sensation.

Now, Cheung Kong Holdings has once again released two buildings in one go, demonstrating its superior status in Hong Kong, which is unmatched by other Chinese-owned real estate companies.

Last year, Fok Ying-tung only sold two buildings; in fact, this wave of property sales in Hong Kong has only just begun.

Cheung Kong Holdings has once again made headlines, selling out in just 24 hours, shocking the Hong Kong real estate industry. Has Cheung Kong Holdings' reputation truly reached such an extent?
In fact, everyone quickly realized three things:

First, CK Asset Holdings does indeed have a good reputation because it has abundant assets and strong financial strength, even surpassing British-owned Landmark in ranking second.

Secondly, Man Wah New Village is already about halfway built and will be completed and handed over in just over a year, so everyone can keep an eye on it. Moreover, Man Wah New Village has been promoted as a housing estate with complete facilities.

Third, many employees of Chen's enterprises still enjoy a 5% discount. They have purchasing power, so they naturally won't miss such an opportunity.

The news that the second phase of Man Wah New Village sold out in 24 hours has exacerbated the rise in land prices in Hong Kong, while property prices have not risen much (due to purchasing power issues).

The ratio of land price to construction cost has also changed dramatically, from the initial 1 (land price): 2 (construction cost) to the current 1:1, and will continue to develop in the direction of 2 (land price): 1 (construction cost).

For example, a plot of land of 2 square feet used to cost only 60 to 70 HKD in land fees, and the construction costs plus taxes would not exceed 150 million HKD, while the total selling price could reach 500 million HKD.
Now, the land cost for this plot of land is probably 150 million, the construction cost and taxes are 150 million, and the total selling price could reach 600 million.

But next year, the land might cost 300 million, construction and taxes 160 million, and the total selling price might still be 600 million, with little profit.

Moreover, these figures don't even include loan interest, making the competition extremely fierce. (End of Chapter)