A century-old wealthy family that rose from Shanghai

In his office at Ping An Bank Building, Chen Guangliang was reading a copy of the Oriental Daily.

A piece of news made him wary—Liao Baoshan of Liao Chuangxing Enterprises announced that his family fortune had exceeded 100 million.

This news itself has nothing to do with him; after all, it was just Liao Baoshan boasting in front of the media to prove the strength and excellent reputation of his Liao Chong Hing Bank and Liao Chong Hing Enterprises.

But Chen Guangliang understood that this might be the prelude to a bank run.

Liao Baoshan's high profile inevitably aroused jealousy. In the eyes of those with ulterior motives, the reason why Liao Baoshan rose to prominence so quickly was because he used bank depositors' money to invest heavily in real estate over the years, rapidly accumulating a huge fortune.

Therefore, this laid the groundwork for what happened to him this year.

What Chen Guangliang needs to be wary of is Ping An Bank, because there will be even more people who are jealous of the Chen family!

Chen Guangliang began to think carefully:
The more than 9000 million yuan in loans of CK Asset Holdings were basically provided by Ping An Bank;
Of course, the total deposits of Universal Group, Yangtze River Industrial Group, and Times Pictures in Ping An Bank are more than this figure!
At the same time, Ping An Bank has consistently provided substantial support to Hong Kong's industrial and commercial sectors, resulting in a relatively large proportion of loans being issued.

Ping An Bank's current loan-to-deposit ratio is only around 52%, which is not considered high; however, if a bank run were to occur, it would certainly cause problems.

Chen Guangliang quickly felt relieved again. As long as Cheung Kong Holdings successfully went public, the risks to Ping An Bank would be greatly reduced. Moreover, although Ping An Bank's reputation was not as good as HSBC or Standard Chartered, it was much better than Hang Seng Bank in his previous life, so the risk of a bank run was very small.

"There's no need to worry about a bank run this year (1961)! Instead, we should worry about a bank run in 1965. But at that time, we only need to make some preparations in advance, and Ping An Bank will be fine."

After considering all this, Chen Guangliang felt completely relieved. Although Hong Kong's history was being altered, it wouldn't be too far off, as much of the time was simply part of the inevitable course of history.

For example, the 'bank run' in the previous life in 1965 was based on the Hong Kong government's amendment to the Building Ordinance in 1962, which stipulated that the building area would be reduced after 1965.

Therefore, many developers rushed into the development stage ahead of schedule, and a large amount of capital poured into the real estate industry, causing banks to run out of money. Of course, this may only be one of the reasons, but such a history still exists.

What happened two years later is history that cannot be changed.

Chen Guangliang's consideration of these issues stemmed from his wariness of HSBC and Standard Chartered Bank, fearing that they might sabotage Ping An Bank behind its back out of jealousy of its influence in Hong Kong's industry and commerce. Therefore, at crucial moments, Chen Guangliang had to optimize Ping An Bank's loan-to-deposit ratio to maintain sufficient cash flow.

For example, the listing of CK Asset Holdings was also for this reason: to take control of shareholders' money while also making Ping An Bank's cash flow more abundant.

Not a moment.

Chen Guangliang summoned Zhang Shounian, the general manager of Ping An Investment.

Ping An Investment is an investment bank, and it served as the financial advisor for CK Asset Holdings' IPO.

On the other hand, Ping An Investment has departments such as Real Estate Trust, Securities Investment, and Ping An Insurance, and its assets are quite substantial.

Its real estate trust division currently mainly holds industrial buildings in Hong Kong and overseas real estate, with assets worth hundreds of millions.

Regarding the securities and trust department, it not only holds 5-10% of high-quality stocks in Hong Kong, but has also entered the US and Japanese stock markets with a small amount of investment.

"Shu Nian, immediately reduce our Hong Kong stock holdings by half. Deposit the proceeds into Ping An Bank for future share buybacks. Also, reduce our stake in Times Pictures to 40% (out of a total of 60%)."

This wave of stock market activity, calculated from 1950, multiplied several times over, with an astonishing rate of return.

However, the Hong Kong stock market is quite small, with a trading volume of around HK$12 billion last year.

Zhang Shounian nodded and said, "The Hong Kong stock market has indeed risen very high in recent years, and withdrawing 50% of the funds is a very wise decision."

He realized something—the boss had listed Cheung Kong Holdings at this time, which was obviously at a high point, and the company's market value would probably fall later.

That's a brilliant move! Going public when the stock market is at its hottest is the best time, whether it's raising more funds or increasing the success rate of the IPO.

Chen Guangliang said, "If it weren't for the funding issues at Ping An Bank, I might not have chosen to withdraw, since I intend to invest for the long term. So, I will still take the opportunity to buy in later."

"Ok"

Although Zhang Shounian wanted to ask why Ping An Bank was experiencing financial problems, he kept quiet. Some things simply couldn't be explained by common sense; this was a thought he had held for many years after working with his boss.

After Zhang Shounian left, Chen Guangliang was completely relieved.

This pullback has affected tens of millions of dollars. We can wait until this year is over before looking for another opportunity to buy in.

Even if all else fails, it's still possible to buy at the bottom after 1965 or 1967.

After the Spring Festival, CK Asset Holdings officially began the listing process. In a very short time, the funds subscribed to CK Asset Holdings reached five times the funds for the issuance of shares, and the frozen funds amounted to HK$9 million.

No one in Hong Kong expected that Cheung Kong Holdings' stock would be so popular!

When CK Asset Holdings went public in early March, its shares quickly appreciated to HK$40, giving it a market capitalization of HK$12 billion.

In a short time, CK Asset Holdings became a behemoth listed company in Hong Kong.

At the same time, the Hong Kong stock market also experienced a new surge, with citizens flocking to the market with their capital. Such a scene certainly did not occur in the past, so the history of the Hong Kong stock market has changed somewhat.

In the conference room of CK Asset Holdings Limited.

Chan Kwong-leung chaired the real estate meeting: "After Cheung Kong Holdings went public, part of the funds were used to repay debts. At the same time, HK$4000 million was used to purchase the 'Era Studios' site in North Point's Garden Hill. This plot of land is 22.5 square feet, and I plan to build a large private housing estate there."

虽然只有22.5万平方尺的地盘，但地积比可达到9左右，这样算下来便是180~190万平方尺的可建楼面；每个住宅单元约为450~950平方尺的话，差不多是2800个住宅单元左右。

With such a scale, it is natural to build corresponding public facilities, making it resemble a 'private housing estate' project.

Lu Xiaoqing, who is in charge of residential real estate development, immediately said: "The Ming Shan site in North Point has excellent geographical conditions and a quiet environment. It is indeed a good site. If we add complete facilities and high-quality construction, it can be considered a mid-to-high-end private housing estate."

He and Chen Wenjie are considered representatives of the new senior management, but only in the real estate industry.

Chen Wenjie also commented: "The construction progress of this project can be used as a phased sales project from 1962 to 1964, thus ensuring a continuous supply of residential housing. At the same time, together with other projects, we can maintain a market supply of at least 1000 residential units every year." Lu Xiaoqing smiled and said: "With this project, we can maintain a supply of 1500 residential units every year, firmly maintaining our position as the largest real estate developer in Hong Kong."

Cheung Kong Holdings also purchases land for its annual development projects.

Chen Guangliang said, “Okay, let’s keep this pace. Once the commercial real estate is operational, Cheung Kong Group’s annual profits will be very substantial. At the same time, I also plan to develop a commercial complex on Orchard Road in Singapore, so Cheung Kong also needs to purchase a plot of land.”

These funds immediately fell into Chen Guangliang's personal hands, and of course, Chen Guangliang also used his own money to buy them.

Chen Wenjie immediately said, "In Singapore's Orchard Road, currently only Dong's Department Store is available. If we were to develop a commercial complex project, Lane Crawford would be the first choice, but at the same time, we could also build a first-class commercial office building."

The hotel is not needed, as the Shangri-La Hotel will be built separately.

One manager questioned, "Can Singapore's economy support Lane Crawford, a high-end department store, and a first-class commercial office building?"

Chen Guangliang stated, "I believe that regions and countries with a predominantly Chinese population generally have a bright future, so Singapore's development potential will also rise. Moreover, Singapore's geographical location is very important."

The crowd then stopped questioning.

The main reason is the strength of CK Asset Holdings Limited, which is also very strong.

Soon, the real estate conference ended, and CK Asset Holdings Limited sped up its operations.

At the end of March, the Causeway Bay shopping mall, located in the "triangle area" of Paterson Street, Great George Street, and Yee Wo Street, officially opened.

The Causeway Bay shopping mall and Daimaru Department Store are separated by only one Great George Street.

Cheung Kong Holdings itself is an integrated development, so the two towers can be connected by an underground passage, allowing citizens and tourists to freely shop in the department stores and shopping centers.

Daimaru Department Store represents the traditional department store model; while Causeway Bay Shopping Centre represents a new business model – a shopping mall.

The fundamental difference between the two is that a department store is a non-self-service shopping center, while a shopping center is a self-service shopping center. Department stores are managed by a single company and mainly feature their own brands, while shopping centers attract different brands and categories.

The two different retail models provide a very intuitive comparison, allowing citizens and tourists to shop to their heart's content.

Chen Guangliang, accompanied by his subordinates, inspected the Paterson Street commercial complex. When he saw that both Daimaru Department Store and Causeway Bay Shopping Centre were packed with customers, he smiled with satisfaction.

This successful business venture is enough to demonstrate to the people of Hong Kong the strength and reputation of 'CK Asset Holdings'.

Later, Chen Guangliang visited other projects on Baidexin Street.

Three of the apartment buildings have already been fully rented out, totaling approximately 680 units.

Moreover, the ground floor of all three apartment buildings is used for commercial purposes and leased to businesses.

He walked into a Wellcome supermarket for inspection. Wellcome is Hong Kong's first supermarket brand, and now has more than ten stores.

As for the British capital, they still haven't realized what's happening. The Dairy Farm Company has established a brand, but it's still owned by Zhou Xinian, a Chinese businessman.

Of course, Watsons is a representative of Hong Kong's retail enterprises and has excellent conditions.

At the Wellcome supermarket, Chen Guangliang suddenly noticed a problem: "Hey, why are there no bagged rice?"

The subordinates were also surprised. The head of Wellcome Supermarket said, "Our main rice supplier is Global Trading, and they don't even have bagged rice. In fact, there is no bagged rice in the whole of Hong Kong."

It's also because Chen Guangliang gradually became detached from the masses that he only realized this problem now.

He then said, "Bagged rice is the trend, with 5KG, 10KG, 20KG, etc., making it more convenient to choose. So Wellcome supermarkets could work with Global Trade to try launching bagged rice."

"Okay, I've written it down."

Through such details, Chen Guangliang believes that the accumulated advantages and reputation are what enable the Chen family's brand to maintain sufficient competitiveness, and even monopoly power.

On this day, Chen Guangliang convened a group meeting of the Yangtze River Industrial Group.

At the meeting, he listened to work reports from the heads of various industries.

Lin Jianyun of Xinfeng Textile Group reported: "Currently, Hong Kong's textile industry is facing pressure from vicious low-price competition and quota restrictions in overseas joint markets. In response to these challenges, Xinfeng Textile Group has mainly formulated three strategies: First, to produce high-quality textiles and improve textile technology. Second, to pursue high added value and gradually form a textile industry mainly focused on garments. Third, overseas investment. We have already established a textile factory in Nigeria. After the withdrawal of British capital, a large amount of foreign exchange was left behind in Nigeria, but local commodities are scarce, making it an ideal investment destination. Of course, we also face the unstable political environment in Nigeria."

The textile and garment industry has always been one of the pillar industries of the 'Cheung Kong Industrial Group'.

Sun Fung Textile Group holds the status of "enlightener" and "leader" in Hong Kong's textile industry. It has cultivated a large number of textile talents for Hong Kong, which is equivalent to the "Whampoa Military Academy" of Hong Kong's textile industry, thereby driving the development of the entire textile industry in Hong Kong.

Hong Kong's industry is 3 to 5 years ahead of the same period in the previous life. One reason for this is that the textile industry is developing better and of higher quality. When competing with the Japanese textile industry, Hong Kong's textile industry has a larger market share than in the previous life, which is a change.

Chen Guangliang later said, "In Nigeria, we need to pay attention to our relationship with the military and seek out a military figure as one of our backers. Unlike other regions, military coups in Africa can happen very quickly, so we need to prepare for the worst."

Lin Jianyun nodded and said, "Okay, I will pass it on later."

In fact, the advantage of 'information gap' is too obvious. As soon as Xinfeng Textile entered Nigeria, it found that the local area was very suitable for investing in the textile industry - with a large amount of foreign exchange and a shortage of goods.

The fabrics produced by their factories were considered "soft gold" in the local area.

Of course, ordinary investors would be eager to withdraw their funds.

But Xinfeng Textile is not in pain; they want to invest in more textile factories, and even garment factories in the future, as a long-term investment.

Chen Guangliang has always aimed to establish a global textile group. What appears to be the current goal is to build textile and garment factories around the world. However, once Xinfeng Textile Group makes a major foray into 'branded apparel', this global supply chain will be extremely valuable, essentially laying a solid foundation.

Therefore, Chen Guangliang never reduced his support for Xinfeng Textile; on the contrary, he took it very seriously. (End of Chapter)