A century-old wealthy family that rose from Shanghai

December 1967.

Hong Kong, a biting sea breeze sweeps across Victoria Harbour.

The turmoil caused by the incident has gradually subsided. Shops in Tsim Sha Tsui have put their signs back up, and trams in Central have resumed their usual services. Only the occasional graffiti on street corners silently tells the story of the upheaval six months ago.

But the business downturn did not recover along with order – British companies were busy transferring funds to London, wealthy Chinese businessmen were processing immigration procedures, and “urgent sale” signs were piled up in front of luxury real estate agencies in Causeway Bay. The real estate market was like the sea in winter, calm on the surface but with a chilling coldness hidden beneath.

The chairman's office on the 36th floor of the Poly Plaza, the headquarters of Cheung Kong Holdings, exudes a completely different kind of warmth.

Outside the floor-to-ceiling windows, ships shuttled back and forth in Victoria Harbour. Chen Guangliang sat behind his large mahogany desk, his fingertips tracing the "bottom-fishing list" sent by real estate executive Lu Xiaoqing, and a smile unconsciously crept onto his lips.

Every item on the list promises a delightful "bargain":

The gas company site in Yau Ma Tei, Kowloon, with a size of 600 square feet, was acquired for only HK$6 million, less than HK$100 per square foot.

A luxury residential site at 1-3 Macartney Gap Road, Mid-Levels, Central and Western District, a rare location of 5 square feet, was acquired for HK$800 million, nearly 50% lower than the market price before the controversy.

Even more surprisingly, the villa at No. 1 Repulse Bay, which belonged to the gambling king in his previous life, was acquired by Lu Xiaoqing for a low price of HK$90. Before the scandal, a villa in Repulse Bay would easily cost around HK$200 million.

"Manager Lu, I am very satisfied with this report card." Chen Guangliang placed the list on the table and glanced at Lu Xiaoqing. "Especially the two plots of land, Majixian Gorge Road and Repulse Bay, your judgment was very accurate."

Lu Xiaoqing quickly replied modestly, "It's all thanks to your instructions, Chairman—you said that 'the six months after the storm is the golden period for buying at the bottom,' and told us to 'buy everything, big or small, focusing on scarce locations.' We were just following your instructions."

He paused, then added, "However, the owners of No. 1 Repulse Bay are indeed in a hurry to immigrate to Canada. I heard they even want to pack up their furniture and take it with them, which is why the price is so low."

Chen Guangliang smiled and nodded, tapping his finger on the entry for No. 1 Repulse Bay: "This villa doesn't need to be rebuilt for the time being. After it's renovated and refurbished, I'll rent it for vacation purposes."

He recalled the residences of the four wives and their sons—the four wives lived at No. 79, No. 80, No. 77, and No. 75 Deep Water Bay, while No. 79 Deep Water Bay, No. 35 Repulse Bay, No. 1 Peak Road, and No. 12 Shek O were given to the four sons.

Now that there's this No. 1 Repulse Bay, I can finally escape the hustle and bustle of home and enjoy a moment of peace and quiet.

Lu Xiaoqing immediately agreed: "I'll arrange it right away and bring you the renovation plan later."

At 10:00 AM, the senior real estate executives meeting of CK Asset Holdings Limited was held on time.

Inside the conference room, more than a dozen senior executives sat around a long table, on which were spread out a map of Hong Kong and various land data. The atmosphere was so lively that it seemed to be isolated from the desolation outside the window.

"So far, we have acquired 26 land sites in the past five months, with a total buildable area of ​​over 2 million square feet and a total cost of HK$68 million."

Lu Xiaoqing stood in front of the map and circled the acquired plots of land with a red pen.
"The speed could be a little faster."

Chen Guangliang spoke, his voice steady yet carrying an undeniable determination: "The current land prices are more than 50% lower than before the turmoil. Many property owners are eager to cash out and emigrate, which is the best time for us to expand our territory. Whether it's a large or small plot of land, as long as the location is right and the price is reasonable, we will decisively acquire it—especially land in the New Territories, which no one cares about now, but will become highly sought-after in ten years."

A senior executive in charge of finance couldn't help but ask: "Chairman, we have already spent 6800 million in the past 5 months. If we continue to make acquisitions, will our cash flow be tight? After all, the Hung Hom Tunnel project is still under construction, and the Shangri-La Hotel in Singapore also needs financial support."

"Cash flow is not a problem."

Chen Guangliang opened the financial statements and said confidently, "First, Cheung Kong's overall profits are substantial, with relatively stable revenues from hotels, commercial real estate, and beverage and food businesses. The funds used for the real estate acquisitions can fully cover these profits. Second, Ping An Bank will provide full support, specifically for real estate acquisitions."

He paused, looked at everyone, and continued, "Everyone must remember that the real estate industry follows a 'small cycle of three years and a large cycle of ten years.' We are currently at the bottom of the cycle. The less people dare to buy, the more we should dare to make a move. Once the market recovers, the value of these plots will at least triple. Then you will know how correct today's decision was."

The executives nodded in agreement, their initial concerns gradually dissipating.

They were already used to Chen Guangliang's "reverse thinking"—his bottom-fishing in 1950, his bottom-fishing in 1958, and even his small-scale bottom-fishing in 1965.

Chen Guangliang changed the subject, his gaze falling on the Lantau Island area on the map, and said, "There's one more thing, regarding the Discovery Bay project on Lantau Island, I plan to formally approve it."

This sentence immediately silenced the meeting room.

Discovery Bay is located in the northern part of Lantau Island. It is an offshore island far from the city. At that time, it was just a barren mudflat with no roads, no water or electricity, and not even a permanent population. In everyone's eyes, it was a piece of land that was "worthless".

Lu Xiaoqing couldn't help but ask, "Chairman, Discovery Bay is indeed large, but it's also very difficult to develop—just building roads, ponds, and power supply facilities will require an investment of hundreds of millions of Hong Kong dollars, and there will be no returns in the short term. We are currently at a crucial time for buying at the bottom of the market. Will investing funds in Discovery Bay affect the acquisition of other land?"

“No.” Chen Guangliang shook his head, taking out a pre-prepared planning map. “I’ve already arranged with Ping An Bank to establish a separate company for the Discovery Bay project—Hong Kong Development Bank. All funds will be from a dedicated loan, not from Cheung Kong’s own capital. As for the development pace, we don’t need to rush. Over the next ten years, we’ll focus on three things: First, building an 18-hole golf club to attract high-end clients; second, building a yacht marina and yacht club to connect with shipping resources in Tsim Sha Tsui; and third, developing several independent garden villas, each with a floor area exceeding 2 square feet.”

Pointing to the beach area on the planning map, he added, "In addition, the natural landscape of Discovery Bay will be preserved, while an artificial beach will be built; roads, ponds, and electricity will be constructed inside. It seems like a large investment now, but in ten years, this will become Hong Kong's first 'resort-style residential project,' and long-term development can even take forty years, making its value immeasurable."

As the executives looked at the planning map, they gradually understood Chen Guangliang's ambition—Discovery Bay was not a short-term "bottom-fishing project," but a long-term "strategic layout," using the current low price to lock in future scarce resources. This was precisely Chen Guangliang's vision, which far surpassed that of other real estate developers.

“I understand,” Lu Xiaoqing nodded.

"I will immediately assemble a dedicated team to handle the registration of Hong Kong Resorts and the preliminary research on Discovery Bay, and strive to submit the application to the Hong Kong government this month." Li Jiacheng rushed back to Hong Kong from Singapore and went to Victoria Harbour Properties as soon as possible.

Over the years, in addition to continuing to manufacture toys and plastic flowers, Victoria Harbour Industries now owns a 12-story industrial building in Shau Kei Wan. During the recent turmoil in Hong Kong, Li Ka-shing took his family to Singapore to seek refuge, leaving Hong Kong affairs to Sheng Songsheng and Zhou Qianhe.

"Boss, things have basically calmed down now. Although our factory suffered some setbacks during this period, it has maintained profitability for the past six months and has not completely shut down." Zhou Qianhe handed over the financial documents.

Li Jiacheng read it carefully and found that the factory had made a profit of HK$12 in six months, so he didn't feel disappointed. After all, returning to the factory and seeing it operating normally was already a rare treat.

"Yes, the plastic flower industry is completely finished, but the toy industry still has great potential. We will focus our efforts on the toy industry in the future."

Sheng Songsheng, who was in charge of production, said, "Understood. Actually, we've been losing money on plastic flowers for the past six months. Should we consider shutting it down?"

Li Jiacheng hesitated for a moment, then said, "Let's keep it. I think although we don't make much money, our old customers still have needs, so we have to be responsible to the end. After all, we also have these customers who introduce us and act as agents in the toy industry."

Ultimately, it's because he has an emotional attachment to this industry. If it weren't for plastic flowers, he wouldn't have an industrial building in his possession, nor would he have more than 200 million yuan in savings.

"it is good"

A moment later, Li Jiacheng suddenly said, "I want to get into the real estate industry and buy at the bottom immediately. Tell me about the specific market conditions in Hong Kong!"

Sheng Songsheng's eyes lit up, and he immediately said, "Hong Kong property prices have been declining since 1965, and this year has seen the biggest drop, with the market flooded with cheap land and properties. For example, a luxury mansion that was originally worth over HK$20 is now worth only HK$8; an industrial plot in Kwun Tong that was originally worth over HK$150 is now only worth around HK$50."

Li Jiacheng naturally had some idea of ​​the situation, as he had been reading newspapers in Singapore to stay informed about developments in Hong Kong.

After a moment's thought, he said, "I currently have more than HK$200 million available, which is about enough to buy two industrial plots. Later, we can use loans to build two more industrial buildings."

Soon, Li Jiacheng came up with a plan—he acquired industrial land for the first time in 1958, completed the project in 1960, and began collecting rent. The profits were very substantial, and he paid off the loan in just a few years.

Sheng Songsheng nodded and said, "Toys and plastic flowers can still bring the company hundreds of thousands in profit every year. Add to that the rent from the industrial building, and it's not a big problem."

Li Jiacheng suddenly thought of something and said, "Well, you guys should look for some opportunities for me right away. I might need to raise some more funds to increase my real estate investment."

"it is good"

Things are different now. Li Jiacheng has married his cousin. If he were to ask his uncle for a share, it would be a partnership, and at least his mother-in-law would support him.

Perhaps, in addition to the two factory properties, he can raise funds to purchase another factory property.

At this time, Li Jiacheng made the most of his funds, which laid the foundation for his later listing. Of course, that's another story, so let's leave it at that.

Two weeks later, Cheung Kong Holdings submitted its application for the Discovery Bay project to the Hong Kong government. To Lu Xiaoqing's surprise, the Hong Kong government's approval process was exceptionally smooth. On the one hand, Chen Guangliang had repeatedly expressed his support for the Hong Kong government after the turmoil, contributing to social stability, and the Hong Kong government had a favorable impression of him. On the other hand, Discovery Bay was considered a "worthless" deserted island at the time, and the Hong Kong government believed that handing it over to Cheung Kong Holdings for development would not only boost Lantau Island's economy but also avoid development risks, making it a "worthwhile deal."

On December 16, CK Asset Holdings Limited officially signed an agreement with the Hong Kong Lands Department to acquire 650 hectares of land in Discovery Bay for HK$35 million. This is the largest single land grant ever granted by the Hong Kong government and Hong Kong's first resort-style residential project. The news caused an uproar in Hong Kong's real estate industry. Many British-owned developers ridiculed Chan Kwong-leung for being "crazy," spending HK$35 million on a "desert island." Only a few far-sighted Chinese businessmen vaguely perceived the deeper meaning behind this strategic move.

On the afternoon of the signing, Chen Guangliang boarded the "British American" superyacht and arrived at the sea in Discovery Bay.

The yacht was anchored a few hundred meters from the shore. He stood on the deck, gazing at the desolate mudflats before him—in the distance, there were rolling green hills, and nearby, clear seawater. The beach shimmered with golden light under the sun, and the air was filled with the fresh scent of the sea breeze.

“What a great place,” Chen Guangliang murmured to himself, then boarded a helicopter and looked down at Discovery Bay from the air.

As the plane slowly ascended, the entire panorama of Discovery Bay gradually unfolded—650 hectares of land, like an emerald inlaid in the southeast of Lantau Island, with a winding coastline, numerous natural bays, and large tracts of flat land suitable for development. Pointing to a flat area below, he said to Lu Xiaoqing beside him, "That's the site for the golf club; we need to ensure that every hole has a sea view. And that bay over there is perfect for building a yacht marina; the water is deep enough to accommodate large yachts."

Lu Xiaoqing held his notebook and carefully noted down every detail: "I will ask the design team to come up with a plan as soon as possible, and strive to start preliminary construction at the beginning of next year, first to repair the roads and water and electricity facilities."

The helicopter circled over Discovery Bay for half an hour before Chen Guangliang signaled for it to return.

Sitting on the yacht, he watched Discovery Bay gradually disappear into the distance, his heart filled with anticipation.

He knew that the project might not yield real returns for another ten years, but he was patient—just like when he built oil tankers like crazy when the Suez Canal was closed, and now when he buys up Hong Kong real estate at rock-bottom prices, he has never lacked the "courage to wait."

As the sun sets, the "British American" yacht sails on the waters of Victoria Harbour, the golden sunlight shining on the hull and reflecting Chen Guangliang's resolute figure.

The real estate winter in Hong Kong is not over yet, but he knows that the spring for Cheung Kong has quietly begun in this wave of bargain hunting.

Discovery Bay, this seemingly "crazy" project, will eventually become a legend in Hong Kong's real estate history in the years to come—he wants to build it into a "city within a city".

He won't completely replicate the style of the Cha family from his previous life; he will create a more influential real estate project. (End of Chapter)