A century-old wealthy family that rose from Shanghai

The family office's headquarters are located on the 12th floor of the Ping An Bank Building. And because it currently only has investment functions, it is only registered as a family trust fund, not a true family office.

When the time is right, this family trust fund will be transformed into a family office; this is the final plan set by the Chen family.

In terms of staff recruitment, the main source of hires was from the Chen family enterprises. Several "old retainers of the Chen family" were also invited as external supervisors, such as Du Weifan (brother-in-law) of Ping An Bank and Guo Deming of Cheung Kong Industrial Group.

In terms of investment, initially HK$1 million was invested in IBM stock, HK$5000 million was invested in Asia (Hong Kong, Japan, and Singapore), and HK$5000 million was invested in Europe.

Regarding the Asian portion of the funds, Chen Guangliang believed that investing HK$1000 million in Hong Kong stocks and selling them quickly at the end of 1964 should yield a good return. Other than that, there were no better investments at the moment, as Japanese stocks appeared to have plummeted during the 1964 Olympics, and Hong Kong real estate was also at a critical point.

Since there are no better projects, it is natural to put them on hold for the time being.

The same applies to Europe. The UK stock market hasn't performed well in recent years, and British products lack global competitiveness; further investigation is needed. Of course, Europe isn't just about the UK; Chen Guangliang is familiar with the "star stocks" of many countries, so long-term investment shouldn't be a problem.

Akihabara Electric Town, Tokyo.

As predicted in the telegram, Mitsui & Co.'s "Lucky Claw" claw machine occupied half the street's stalls with its low price. However, careful players soon discovered that the claws of these machines were not very flexible and would jam, with a failure rate twice that of Huatai products.

Meanwhile, the South China Morning Post published an unassuming news item: "Huatai Toys and Fairchild Semiconductor have reached a technology cooperation agreement, and the next generation of claw machines will be equipped with an electronic timing system."

In the accompanying photo, Su Dongsheng is shaking hands with an engineer from Fairchild Semiconductor, and the words "Rongchang Heavy Industry Precision Components" are prominently displayed on the machine casing in the background.

"Is this implying that our machines are poorly made?" The president of Mitsui & Co. angrily slammed his teacup down at the board meeting.

The real killer move will arrive in September.

At the New York Toy Fair, Chen Wenkai stood with an extraordinary air in front of the Huatai Toys booth.

When a representative from Mitsui & Co. arrived with reporters to challenge him, he smiled slightly and pressed a button on the side of the claw machine. The originally transparent acrylic barrier suddenly turned frosted, and the plush toys inside instantly glowed fluorescently—this was a collaboration between Yangtze River Industrial Group and the American company 3M.

"Our second-generation model"

Clearly, this series of changes is a response from Huatai Toys to competition from Japan.

On the evening the exhibition ended, Macy's purchasing director approached Su Dongsheng. "We want to exclusively sell this luminous machine model," he said, handing over the contract, "but the price must be fifteen percent higher than the Japanese products. We need to prove to our customers that you get what you pay for."

Huatai succeeded!
Meanwhile, at the Osaka factory, engineers from Mitsui & Co. were racking their brains over the disassembled Huatai machinery. They could replicate the mechanical structure, but they couldn't figure out what the glowing fluff was all about—it was actually made by the Yangtze River Industrial Group using textile mill scraps mixed with fluorescent powder, costing 30% less than ordinary fluff.

Their orders have been limited to the Japanese domestic market, while the overseas market is dominated by Hong Kong's Wah Tai Toys; moreover, Wah Tai Toys is showing signs of turning the tables in the Japanese domestic claw machine market.

In this battle, Hong Kong defeated Japan!

At that moment, Chan Kwong-leung was standing on the top floor of Cheung Kong Holdings, overlooking the bustling cityscape of Hong Kong.

He knew that business competition would never cease, and new challenges could arise at any time. But he was confident that, with the collaborative efforts of his various groups and through continuous innovation and progress, his business empire would continue to overcome obstacles and achieve even greater success in future business battles.

Wah Tai Toys' claw machines not only became a calling card for Hong Kong's manufacturing industry but also sparked a global claw machine craze. This commercial battle with Japanese businessmen has become a classic case in Hong Kong's business history, one that will be talked about for generations to come. It teaches us that in business competition, innovation and wisdom are often more important than price; only by continuously improving product quality and added value can one remain invincible in fierce market competition.

Plastic flowers, suitcases, instant noodles, Rubik's Cubes, plastic building blocks, new yachts, claw machines—the miracles created by Yangtze River Industrial Group will continue!
Kowloon, Public Square Street.

Wenhua New Village.

This is Cheung Kong Holdings' first high-rise residential project, with a total of 1500 residential units, making it Hong Kong's first large-scale housing estate.

In a unit on the 12th floor of Building C, Abao and Amei, one of the earliest immigrant families in Shanghai, are having dinner together.

In 1957, the year after Ah Mei bought the property in Man Wah New Village, she gave birth to another son, bringing her total to two sons and one daughter.

A family of five living in this 850-square-foot "luxury house" can be considered middle class in Hong Kong.

During the meal, Ah Mei said, "The prices of houses outside have gone crazy. The price per square foot in our Man Wah New Village has soared to HK$80 to HK$85 per square foot. In just over seven years, we have more than doubled our money."

Ah Bao, dressed in a suit and tie, exuding the air of a successful man, laughed and said, "What do you mean by more than doubling your money? Are you going to sell this apartment?"

In early 1956, because they were part of the management of the Cheung Kong Industrial Group, the price per square foot was less than HK$35. Moreover, they paid off their debts in just three years, during which time they also had their third child.

Ah Mei said irritably, "Where would we live if we sold our house? I was just saying. Of the mainlanders who came to Hong Kong with us, how many are still living in tin shacks on the mountain? Maybe the better ones live in public housing. It's really rare to see people like us who can afford to buy a house."

Ah Bao straightened his back and said, "Many of my colleagues have bought houses because every time Cheung Kong Holdings opens a new project, they give eligible management staff a 5% discount. I've also heard that the entire management team of the Chen Group, even the lower-level managers, have a very high chance of buying a house."

Amei has also worked as a line manager on a textile production line, managing over a hundred workers at her peak, so she has some experience.

"This is a benefit of the Chen family business. I've also heard that among the four major groups of the Chen family, the pension plus housing is the most enviable. Take salary for example, in the early 1956 you only earned 350 yuan a month, and now it has risen to 800 yuan. To be honest, a house now costs only 5 to 10 yuan, and our family can buy another one."

Abao immediately retorted, "Don't even think about it! You're not working right now, and my monthly salary has to support the whole family and pay for three children's education. It's already a miracle that I can support the family!"

His salary is indeed considered middle class, around $1.2 a year (14 months' salary), plus some benefits. For example, he could buy a small 600-square-foot house in five years without spending a penny.

Meanwhile, the average salary of Hong Kong workers outside the city was HK$150; and because of the influx of 100,000 to 200,000 mainlanders in 1961-1962 (famine), many Hong Kong workers (unregistered workers) only earned HK$60 a month!
Amei immediately said, "I just want to go out and work. The youngest is already 7 years old. I plan to go and ask at a textile factory. If all else fails, I can find some work at home. In two years, we might buy another apartment. I remember when I was a line manager, I met Mr. Chen, and he said something like, 'If you have money, you should buy a house so you can live and work in peace.'"

Compared to Ah Bao, Ah Mei has more courage.

Abao, on the other hand, needs to consider the education of his three children. After joining the management of Xinfeng Textile, he knows that education is the key to changing one's destiny.

After a moment's thought, he said, "Sin Fung Textile Group is increasing its investment in Nigeria and needs to send management personnel from Hong Kong. The group has promised a 30% salary increase, as well as some subsidies and benefits. I'd like to apply for a two-year assignment to earn more money. You should just stay home and take care of the children!"

Many of my colleagues are interested in this, and Abao isn't that great.

“No way,” Amei said without hesitation. “Are you looking down on me? I’m a line leader at Xinfeng Textile Group, earning 300 a month is no problem for me. Your 30% raise won’t even get you that much. Why take the risk? It’s better for two people to be in Hong Kong, even if they both work, than for one of them to go to Africa.”

"Yes, Dad, Africa is so far away!" the eldest son said sensibly, trying to persuade his father to stay.

Abao said, "Okay, okay, I won't go. Let your mother go to work, and you two stay home and behave yourselves every day."

In fact, Abao was a mid-level manager in Xinfeng's management team, a long-standing low-level manager.

If you manage to get to middle management, your monthly salary will be over a thousand.

Even so, a relatively high percentage of the lower-level management of the Chen Group purchase residential units.

Each time a 5% discount is offered, it motivates some lower-level managers to grit their teeth and buy a unit in installments.

For families like Abao's, his wife Amei shared a significant portion of the financial burden when they bought their first home. Amei said with satisfaction, "If all else fails, we can just hire a nanny. You can find a decent one for 100 yuan. I can earn three or four hundred yuan outside."

Ah Bao laughed and said, "It's up to Xinfeng Textile Group to want you. I'll go and inquire about it for you first!"

"Hmph, I don't need you to ask, I'll ask myself!"

Ah Mei was confident. Back then, Chen Guangliang knew her, and the company gave her a lot of face. Moreover, she could be considered a veteran female worker of Xinfeng Textile Group when it came to Hong Kong to build its factory, so she still had a certain status.

"Also, we agreed that we would work hard for two years to try and buy a house."

"Okay, I'll buy it if I have the money."

Shangri-La Hotel.

Several veterans of the original Changjiang Auto Dealership were gathered together, including former partner Li Chao, management team members He Xiangdong and Pan Cheng, and of course, Lin Feng, Chen Guangliang's head bodyguard.

The only one missing is Zhou Xinggao, who was eliminated by Kuomintang agents after going astray and becoming a traitor, a truly lamentable situation.

The four sat together, with Lin Feng as the most respected, because Lin Feng had always been Chen Guangliang's head bodyguard, and as he got older, he became the head of the bodyguard company.

Pan Cheng was the first to exclaim, "I never dreamed that I, a rickshaw puller, would live to be sitting in a five-star hotel drinking tea."

He Xiangdong said, “Not at all! To put it bluntly, I followed the right person back then. Thinking back, the boss practically forced us to learn culture and management, and he managed to turn a few rickshaw pullers into the management of the rickshaw company. Around 1949, the boss brought us and our families to Hong Kong. Otherwise, we would still be suffering on the mainland!”

When the four of them get together, they inevitably start talking about the past.

Of course, among the four, Li Chao had a higher starting point. He had managed a team for Chen Guangliang and later went into business. Before the liberation, he also came to Hong Kong and settled down with the help of Chen Guangliang. The difference was that Li Chao did some business in the 50s and lived a better life than He Xiangdong and Pan Cheng.

"Mr. Chen"

Seeing the four of them, Chen Guangliang smiled and said, "We're not late, are we?"

The four immediately stood up, and Li Chao said right away, "We've only been sitting here for a few minutes."

"Sit down, it's a gathering of old friends, don't be shy."

Taking time to have tea with these friends is something Chen Guangliang enjoys.

"How are you? Have you encountered any difficulties in your life?" This is the first question Chen Guangliang always asks after sitting down.

He is a sentimental person; if a close subordinate who used to follow him is not doing well, he will definitely help them.

"I'm doing very well, and I'm living a good life. Thank you for your concern, Mr. Chen!"

"Yes, ours is too!"

He Xiangdong and Pan Cheng answered in turn.

Chen Guangliang wouldn't let this topic go easily, otherwise it would be hypocritical.

"Xiangdong, you have four children. Have you bought houses for them all?"

He Xiangdong said with a smile, "They all have houses. After graduating from university, the eldest son joined Cheung Kong Holdings, and he bought a house on his own merit. The fourth son went abroad to study and found a job overseas, so buying a house shouldn't be a problem for him in the future. I also have three houses!"

After all, he had reached the level of middle management, and a relatively important one at that, so buying a house was not a problem for him at all. He even managed to send two of his children to study abroad.

Pan Chengye introduced his family situation, saying that they also own three houses.

Chen Guangliang exclaimed, "Seeing you all doing well makes me happier than if I had made money myself!"

Happiness can be obtained from different sources, and this kind of happiness is genuine.

At this moment, Li Chao asked, "Mr. Chen, you always seem very concerned about our housing situation. Do you have a very positive outlook on the real estate market?"

He later went into business and, with Chen Guangliang's help, even ran a wig business, making a lot of money.

Chen Guangliang laughed and said, "Xiang Dong and A Cheng don't do business, and I was worried that they wouldn't understand investment methods, so I had them buy property. It's simple and effective. Of course, in the long run, the Hong Kong property market is doing very well, and short-term fluctuations are normal."

Li Chao nodded, immediately understanding the situation.

Then, Chen Guangliang patted Lin Feng on the shoulder and said, "Lin Feng, do you want me to give you a raise?"

Lin Feng laughed and said, "I don't want Brother Liang to give me a raise! After being by your side for so many years, I've also learned about investing, which is buying houses. I currently own about ten residential units, and the rental income is quite good."

Everyone was surprised; it turned out that Lin Feng was the real expert!

But thinking about it, it makes sense. Raymond Lam is one of Chan Kwong-leung's most trusted people, and his salary is probably at the level of a senior executive at Cheung Kong Holdings.

Moreover, in 1947, when someone sold the property in tiers, Lin Feng decisively bought one tier; and during the Korean War, he embarked on a buying spree.

The greatest help that people around Chan Kwong-leung received from him was probably the "confidence to establish themselves in Hong Kong," which is why they purchased properties with the idea of ​​settling down and making a living in peace from the very beginning.

“Over the years, I have always told the people around me: your pension is saved by the company; but you also need to save something yourself, and that is property. Now many of my old friends have done it, and I am at ease about your retirement and life after retirement.”

He Xiangdong nodded and said, "Indeed, those of us who came to Hong Kong from Shanghai with Mr. Chen not only avoided the poverty on the mainland, but also lived very well in Hong Kong, with houses and pensions. I plan to retire in two or three years as well."

Hong Kong property prices have already risen to HK$80 (average price), so it is inevitable that they will break through HK$100 next year. At that time, an ordinary residential property will cost HK$6 to HK$10.

Luxury residences in Causeway Bay, originally priced between HK$10 and HK$20 per floor,

It should be about 20% higher than in the previous life. This is mainly due to the fact that the economy is much better than in the previous life, the purchasing power of the management of Chen's Enterprises, and other comprehensive reasons.

Of course, those who can't afford a house still can't afford one, and in fact, they can't afford one even more, which has driven prices up considerably.

Industrial land in Kwun Tong has also risen to HK$145 per square foot, and it's not impossible for it to break HK$160 next year.

Commercial land in Central has risen to 2500 to 3000 per square foot, which is almost at its limit.

This year (1963), the Hong Kong government's land sales revenue has already exceeded HK$1.5 million, and next year it is likely to surpass HK$1.8 million. (End of Chapter)