A century-old wealthy family that rose from Shanghai

Hot summer.

Nearly five months after the turmoil, the first to recover were the garden villas and luxury residences that were sold off cheaply during the real estate crisis.

Since 1968, the rental and sales prices of luxury residential properties in the Mid-Levels, Repulse Bay and Kowloon Tong have risen sharply; by May, the price of luxury residential properties had rebounded to HK$60 to HK$80 per square foot.

It is expected that by the end of the year, prices will rebound to HK$80-100 per square foot; however, this is still 20-30% lower than the peak in 1964.

The reason for the rise in rental and sales prices of high-end residential properties was the significant reduction in the supply of buildings in the mid-to-late 60s. During this period, with the economic recovery and prosperity and the rapid rise in the stock market, a large number of foreign companies, especially multinational companies from the United States and Japan, came to Hong Kong to open branches and send more senior staff to Hong Kong, resulting in a strong demand for high-end residential properties and garden villas.

The top floor of Poly Plaza in Central.

In the chairman's office of Cheung Kong Holdings, Chan Kwong-leung leisurely sipped his tea, showing no signs of the busyness expected of a large corporation's head.

In fact, the reason why the heads of large corporations are so busy is that more than half of their energy is spent thinking about the future of their companies.

Like Buffett in his past life, he spent his days looking at financial statements.

"To become a world-renowned economic tycoon, one cannot stay away from politics; one must understand the current situation and grasp the essentials amidst the dazzling and chaotic appearances." This viewpoint, shared by some prominent business leaders, fully demonstrates the importance of understanding the current situation.

Running a shipbuilding business requires dedication! It demands research. You yourself must be willing to endure hardship and work diligently. When a ship is out in the world, you need to be constantly on the move, have access to a lot of information, and be readily available by phone! For example, if you don't have a clear understanding of the current situation in the Middle East, how can you decide how to handle the affairs of a ship?
For example, with international finance so volatile, you have to consider whether to use US dollars, Japanese yen, or German marks! What kind of money are you receiving from others, and what will happen with future inflation? There are many related factors involved.

When the exchange rate between the Japanese yen and the US dollar was around 360, Chen Guangliang allowed Japanese chartering clients to pay in yen. This practice not only made Japanese clients have a good impression of Global Shipping because of their strict foreign exchange controls, but more importantly, the yen had been appreciating since the 50s.

The appreciation of the yen alone brought huge profits to Worldwide Shipping. Moreover, during this period, Worldwide Shipping also invested the yen in Japanese listed companies, earning even more.

As for how the money in Japan was retrieved?
In fact, Chen Guangliang rarely took them back, because from the mid-1950s onwards, Huanqiu Shipping was building ships on a large scale in Japan.

Chen Guangliang can save this time because a large part of the development plans of his group comes from his memory of the future situation; of course, when it is time to go overseas for inspection, he will go in person.

"dong dong"

"Chen Sheng, Yan Sheng is here!"

"Um"

Soon, Yan Zuhe, the brother-in-law, walked in with a smile.

"brother-in-law"

Chen Guangliang smiled amicably, got up and sat on the sofa with his brother-in-law.

Because of his affection for Yan Renmei's family, Chen Guangliang took great care of both Yan Renmei's and Jiang Meiying's families. In particular, he partnered with Yan Renmei's family in business since the beginning of their time in Shanghai and even persuaded them to move to Hong Kong to develop their business.

He never stopped helping the Yan family. Back then, when his brother-in-law Yan Zuhe almost lost money in the stock market, it was Chen Guangliang who helped him get a loan from Ping An Bank to get through the crisis.

Yan Renmei didn't need to say anything; Chen Guangliang would do these things anyway. Even his son knew Chen Guangliang's attitude.

"What brings you here?"

Yan Zuhe said with a smile, "I've come to report to you on the work of Cafe de Coral. After all, we've been partners for so many years, and Cheung Kong has never come to check the accounts, which makes me feel a little guilty. Fortunately, this time, I took advantage of the real estate downturn to buy up quite a few shops at rock-bottom prices."

After he finished speaking, he respectfully handed over the documents.

Chen Guangliang laughed. This kid was quite clever; he could see right through Chen Guangliang's sharp eyes to know what his purpose was today. Of course, he didn't need to say it.

He looked at the information about 'Café de Coral Fast Food' and realized that the accounts hadn't been checked over the years, since Chen Wenjie was the one who initially made the contact.

Although business is business, some things still depend on personal relationships.

"With 15 stores, the development has been steady and the profits are quite considerable. It seems you've managed it very well."

Yan Zuhe humbly said, "It was also because my brother-in-law's plan was perfect back then, and we were the first to enter the 'Chinese fast food' field, so we already had a stable consumer base. The Chinese fast food restaurants that opened later could only look up to us and barely get a share of the pie."

In the end, he became somewhat confident.

Currently, Chinese fast food has been developed in Hong Kong, but only Cafe de Coral has 15 stores, while Yim Cho-hau's True Delicious Fast Food has 9 stores. Other brands do not have more than five stores, but Maxim's has entered the Western-style coffee and bread chain brand market.

Chen Guangliang then looked at the shops that Yan Zuhe had bought at rock-bottom prices and was immediately surprised. This kid had invested a lot, buying fifteen shops, all of which were considered high-quality shops.

One unassuming shop caught Chen Guangliang's eye—a 600-square-foot shop on Russell Street. He had read a news article in his previous life that said a 600-square-foot shop on Russell Street was priced at HK$3.8 million, with an annual rent of tens of millions of Hong Kong dollars, and the buyer was Yang Shoucheng of Emperor Group.

Based on the price Yan Zuhe paid for this bottom-fishing, the price would increase by a whopping 3800 times, which is outrageous.

Of course, it's not that exaggerated. Recently, a property under Hongkong Land was priced at only HK$2.3 (450 square feet), which can be described as a sharp drop; but in the future, this unit will be worth at least HK$800 million!

The price increase of shops on Russell Street is indeed exaggerated, which may be due to the huge future development potential of Causeway Bay, as well as the great potential of the shops themselves.

“I’ve checked, and Cafe de Coral’s is operating without problems. However, after this incident, Hong Kong will inevitably experience a major economic boom, so in addition to continuing to expand its number of stores, Cafe de Coral can also develop into a mid-to-high-end restaurant.”

Yan Zuhe immediately agreed, "Okay, brother-in-law's advice is definitely right. By the way, brother-in-law, you said Hong Kong's economy is about to experience a major boom, so wouldn't property prices also rise?"

Chen Guangliang laughed, "Isn't it obvious? What, you even bought up properties at rock-bottom prices?" Yan Zuhe immediately pulled out another document and said, "Well, I took out 800 million yuan of my own money, borrowed 500 million yuan from Ping An Bank, and 300 million yuan from other banks to buy some properties. Then I set up a real estate company and put these properties under my control. Brother-in-law, can you give me your opinion?"

Chen Guangliang took the documents and glanced at them briefly. They included two industrial buildings, an industrial plot in Kwun Tong, three small residential sites, about ten luxury homes in Mid-Levels, and a floor of office space in Central.
"You're quite clever; there's nothing wrong with these properties. Focus on steady development. If the stock market booms in a few years, you can consider going public to raise funds for further property purchases. Just remember one thing: never let your debt exceed 40% again, and you won't repeat your mistake from last time!"

Yan Zuhe said with a smile, "If Wenjie hadn't given me some pointers, I wouldn't have dared to take out such a large loan. This was indeed a risky move!"

Overall, Yan Zuhe's real estate company was only a small-scale operation. By 1972, its assets were worth approximately HK$6000 million or more, with a fundraising scale of around HK$2000 million, making it only a small real estate company. Of course, he now has two companies that can be listed on the stock exchange, and his net worth will be considerable in the future.

After chatting for a while, Yan Zu and Qing Piao Piao left, and he finally realized that he had made the right bet this time.

That day, Chen Guangliang arrived at the Lane Crawford Building on Queen's Road.

"Chen Sheng"

"Chen Sheng"

As he entered the conference room, a diverse group of senior executives, a mix of Chinese and Western, greeted him, including CK Asset Holdings General Manager Chen Wenjie, Lane Crawford Group President Richard, Lane Crawford Department Store President Bruce, Wellcome Supermarket General Manager Li Pingshan, Lane Crawford Jewellery President David, 7-Eleven Convenience Store President Wang Qilin, and many other senior executives.

After Chen Guangliang sat down, he chaired the meeting: "I'd like to hear about the development of Lane Crawford Jewelry first!"

Initially, the acquisition of Lane Crawford was primarily driven by its location on Beacon Street, where Lane Crawford's headquarters were situated. However, the subsequent development of Lane Crawford into a retail conglomerate ultimately resulted in a large, diversified retail group.

Lane Crawford Department Store, Lane Crawford Jewelry, Lane Crawford Antiques, Lane Crawford Interior Design, Lane Crawford Import & Export Trading, Wellcome Supermarket, 7-Eleven Convenience Store, etc.

David immediately reported, "Since its establishment, Lane Crawford Jewellery has not only developed gold and silver jewelry, but also focused on diamond and gemstone jewelry. According to data released by the Hong Kong Census and Statistics Department, in 1962-1963, diamonds accounted for 6.3% of the total re-export trade, marking the first time the Hong Kong government included diamonds as a single major commodity in its re-export calculations. In 1967-1968, diamonds accounted for 14.1% of re-exports. Lane Crawford Jewellery holds a 40% share of the diamond trade in Hong Kong, making it a leader in the Hong Kong diamond industry. Local diamond jewelry is very popular with tourists and local residents."

When he gave his report, everyone looked at Chen Guangliang with admiration. Of course, it was Chen Guangliang who led Lane Crawford Jewelry to seek opportunities in South Africa and acquire a South African diamond processing factory that owned more than a dozen photos of De Beers, which led to their current success.

Of course, Lane Crawford Jewelry is still weaker than Chow Tai Fook and Chow Sang Sang in the gold and silver jewelry sector; the main reason is the different positioning. Lane Crawford Jewelry is positioned as high-end, while Chow Tai Fook and Chow Sang Sang can only be considered mid-range.

Upon hearing this, Chen Guangliang laughed and said, "It proves that our initial choice was correct!"

Everyone laughed.

Later, Chen Guangliang said, "I plan to enter the cosmetics and skincare industry. Lane Crawford Group needs to establish a brand called 'Florasis'. The 'Florasis' in Florasis means 'using flowers to nourish makeup.' Xizi refers to West Lake and also to Xi Shi. The name 'Xizi' is taken from Su Dongpo's poem, 'To compare West Lake to Xi Shi, whether lightly or heavily made up, she is always beautiful.' Xizi is also an honorific title for Xi Shi, who is the foremost of the Four Beauties of ancient China."

I still have to explain it to the foreigners inside!
Lane Crawford Group CEO Richard later said, "If the theme is flowers, then Hong Kong doesn't produce flowers!"

Chen Guangliang said, "The theme isn't flowers, but nature. As for raw materials, we'll gradually establish bases overseas. In short, I hope Lane Crawford Group can acquire another influential brand, namely cosmetics and skincare products. I'll receive the specific plan in half a month!"

"Yes, Mr. Chen."

There was no room for objection; all that was left was to make the arrangements.

In fact, in Chen Guangliang's view, the cosmetics and skincare industry, and even the beauty industry in general, is all preparation for the future "Hong Kong Wave culture." Hong Kong Wave culture will not only boost Hong Kong's tourism and retail industries, but also its clothing and cosmetics industries.

This summer, all members of the Chan family gathered again at 79 Deep Water Bay. Family members who haven't started working generally spend about a month together in Hong Kong. Even those who have started working need to set aside a week to get together.

Of the 15 children in the second generation, seven have entered the workforce. The first wife has four sons, and the second wife has two sons and one daughter. These seven children were actually born in the early 30s and 40s.
It wasn't until the 50s, when Chen Guangliang met Audrey Hepburn and she gave birth to the first of his second batch of children, that things took a turn for the better. Yan Renmei and Jiang Meiying also each gave birth to a child in 1952, followed by children with Audrey Hepburn and Si Yezi. This batch totaled eight children, born in the 50s and 60s.

Indeed, Chen Guangliang's youngest daughter is several years younger than his grandson.

Chen Guangliang's grandchildren already number 11, and the number is growing rapidly.

Inside the villa, family members of similar age gathered to chat, with six of them having joined the workforce exchanging ideas. The daughter, Chen Leyi, was already married and no longer attended such family gatherings; after all, she couldn't come here without her husband, who was also from a different branch of the family.

Chen Leyi is currently only attending family gatherings of the second wife's family, and it's perfectly fine for her to bring her husband and son.

During the conversation, Chen Wenjin asked, "Brother, where in Hong Kong do you think there's still land suitable for building a five-star hotel?"

Chen Wenjie didn't hold back, saying, "Currently, your Ritz-Carlton and Sheraton hotels don't have many options, but if you wait patiently, there will definitely be opportunities. For example, the Sheraton is a five-star hotel, and you could consider Salisbury Road in Tsim Sha Tsui. There's a plot of land next to the Peninsula Hotel. I reckon that once the Hong Kong property market recovers, the Hong Kong government will put it up for auction. As for the Ritz-Carlton, it's a five-star luxury hotel, and you'll need to wait patiently for the right location."

Chen Wenjin said with a smile, "The Ritz-Carlton Hotel is not in a hurry to expand overseas, after all, it is only just beginning to develop in the United States. Sheraton Hotel already has a hundred hotels in Europe and America, and the next step is to enter Asia, starting with Hong Kong."

Chen Wenjie said, "Japan is also good. We can consider it!"

Chen Wenjin was immediately delighted and said, "Indeed. It would be great if Cheung Kong Holdings could participate in the cooperation!"

Sheraton owns 100 hotels, but in reality, many of them are only under management, with the property rights belonging to other owners; otherwise, their market value would be much more than $5 million.

Chen Wenjie, who was already the general manager of Cheung Kong Holdings, immediately said, "Of course we can cooperate. Cheung Kong Holdings is quite familiar with Japan."

The two brothers quickly agreed on a collaboration.

Through such exchanges, each property can complement each other's resources and penetrate the local market. Although three- and four-bedroom properties have not yet joined, this is bound to happen in the future.

On the other side, Chen Guangliang talked with his children and grandchildren. He found that his children were very attached to him, while his grandchildren were more respectful of him.

Of course, this is quite normal! (End of Chapter)