A century-old wealthy family that rose from Shanghai

In October 1971, a light rain was falling over Victoria Harbour in Hong Kong, but it couldn't dampen the excitement in front of the Government House in Central. The newly appointed Governor Murray MacLehose had arrived in Hong Kong, and the Hong Kong government held a grand inauguration ceremony for him. The red carpet stretched from the pier all the way to the entrance of the Government House, and the British military honor guard stood in salute. Business and political figures gathered, and Chan Kwong Leung, dressed in a dark custom-made suit, stood out among the Chinese representatives.

As a leader of Hong Kong's Chinese-owned businesses, he not only controls four major groups—Ping An Financial, Cheung Kong Industrial, Cheung Kong Holdings, and Global Holdings—but also continues to lead the development of overseas Chinese communities with the enormous influence he has built in the hearts of the Chinese people since the Republic of China era.

The banquet was held in the Governor's Palace banquet hall, where crystal chandeliers reflected off silver tableware and a band played British-style music.

Without exchanging pleasantries with the heads of the British trading companies, MacLehose took the initiative to approach Chan Kwong-leung, extended his hand and said with a smile, "Mr. Chan, we met in England, but I never expected to become 'colleagues' in Hong Kong. Before coming to Hong Kong, I heard that your family business has permeated almost every aspect of Hong Kong people's lives, from clothing and food to housing and transportation."

The British business tycoons were taken aback. Although they knew Chen Guangliang had a greater influence in the world, it was unprecedented for the Governor of Hong Kong to speak with him first. Of course, everyone understood that Chen Guangliang's growing influence forced the Governor to take the initiative to befriend him.

Of course, on the other hand, Chan Kwong-leung is a 'veteran knight,' while the Governor of Hong Kong was only knighted on the occasion of the 'Queen's Birthday.'

Chen Guangliang said with a faint smile: "My companies do participate in the daily lives of Hong Kong people, but I do not have any exclusive rights granted to me by the Hong Kong government."

He knew that the new governor was different from his predecessor—McLeigh had served in Southeast Asia for many years, and he was not a colonial official but a British Foreign Office official who was well aware of the importance of “local governance.” The growing Chinese capital in Hong Kong’s economy was something he could not ignore.

MacLehose said in surprise, "I see. It seems I didn't know enough. Sir Chan, there are many things I'd like to hear your opinions on in Hong Kong. How about we arrange a private meeting next month?"

"Of course, I also have many things I would like to discuss with you, such as the preparations for upgrading the Hong Kong Polytechnic to the Hong Kong Polytechnic University. Of course, we can discuss these in detail at that time."

This was something Chen Guangliang had to accomplish in the 1970s. The Hong Kong Polytechnic was currently only a tertiary institution, and he had been working hard in recent years to upgrade it to a bachelor's degree university like the University of Hong Kong. He improved the school's facilities and recruited professors from the United States and the United Kingdom, as well as other connections.

It can be said that Chen Guangliang took this matter very seriously.

With a smile on his face, MacLehose nodded and said, "Okay, I'd be very happy to discuss these things with you!"

A little later, he approached the British business tycoons, who had already put on smiles and were not bothered by what had just happened. They were simply unable to accept the fact that Chen Guangliang's influence had surpassed their own.

The next day.

Chen Guangliang invited his brother-in-law Yan Zuhe to dinner at the Shangri-La Hotel, and Yan Zuhe became excited upon hearing the invitation.

Although the two are relatives, Yan Zuhe also knows that many people would look forward to a meal with their brother-in-law, hoping to get some pointers or build a connection. Even he rarely gets together with his brother-in-law in private, and now he only asks Wenjie and Wensheng for help with certain matters.

"Zuhe, have you seen this news?"

At the dinner table, Yan Zuhe received a copy of the Oriental Daily News. The news on it was shocking: On the eve of the opening of Jumbo Floating Restaurant, a fire during interior decoration mercilessly destroyed the restaurant, causing heavy casualties.

"I've seen it. Brother-in-law. It caused 34 deaths and 42 injuries. This news has been making headlines recently. Even if Wanglaoji doesn't die, it will be severely damaged and it will be difficult for it to make a comeback."

Chen Guangliang nodded and said, "Please keep an eye on this matter!"

Yan Zuhe understood immediately and said, "Okay. If Wanglaoji cannot be rebuilt, I will buy it with Dajiale Catering and rebuild it."

The so-called 'reconstruction' is really just buying a new signboard.

Chen Guangliang said, "Remember to do two things well. First, regarding the compensation for those people, we need to see if Wanglaoji can handle it well. If necessary, we, as the new owner, can participate in the compensation, but Wanglaoji must do its best to compensate. Second, after buying the signboard, invest heavily in reconstruction to create a landmark seafood restaurant in Hong Kong. As for funding, it's simple. If Cafe de Coral Catering goes public later, raising ten or twenty million won't be a problem. Plus, with bank backing, it shouldn't be a big issue."

Yan Zuhe nodded and said, "Currently, Dajiale Catering owns 28 fast-food chains and two high-end restaurants. More importantly, we own a large number of shops and office buildings, with a very high asset value. The three major stock exchanges now require 2000 million in capital to list, and we far exceed that asset value. But what about the specific listing timeline?"

Back in 1967-1968, Dajia Catering successively acquired 20 shops at bargain prices. Many of these shops were prime locations, and their current value is probably tens of millions of yuan, more than four or five times higher.

Chen Guangliang laughed and said, "Whenever you list Hong Kong Resorts International, you can start preparing for the listing right away!"

"Understood"

Next, Yan Zuhe took this opportunity to ask Chen Guangliang some business questions.

For example, his real estate company is also preparing to go public; after the listing, he will use the funds to develop real estate and continue to maintain the conservative development model of 'six parts rental and four parts sales'.

Even if Yan Zuhe's personal real estate company goes public, it will only be a small to medium-sized real estate developer with assets of around 50 million; the fundraising scale is expected to be around 10 to 20 million, which is not as good as Li Jiacheng's Cheung Kong Holdings in the previous life (at that time, Cheung Kong Holdings raised 32 million).

Not to mention, Yan Zuhe doesn't have substantial personal assets to back him up, and coupled with his conservative development model, he can only develop a small to medium-sized listed company at best.

Of course, the key is to actually produce it.

Chen Guangliang then advised, "Remember, after the peak comes the inevitable decline. When everyone rushes to go public, the stock market will be overheated. That's the peak of real estate and the stock market. But real estate is cyclical, so debt must not be high."

Yan Zuhe was startled, and immediately said, "I understand."

Upon hearing the word 'cyclical,' he understood that his brother-in-law believed there was still a possibility of a significant drop in Hong Kong's real estate and stock markets in the future. Therefore, even though he had raised funds through the IPO, he decided to maintain a certain level of cash flow as a precaution.

Half a month passed in a blink of an eye.

When Chan Kwong-leung arrived at the Hong Kong government that day, MacLehose's assistant was already waiting at the door. He then went to MacLehose's office.

Lord MacLehose

After exchanging greetings, the two men, referred to as "Sir Chen," sat on the sofa, drank coffee, and chatted.

MacLehose has been in Hong Kong for twenty days and has made some progress in his work there. But the more he does so, the more he discovers the extent of the Chan Kwong Leung family's influence on Hong Kong.

Its four major groups wield an astonishing influence in Hong Kong.

The Cheung Kong Industrial Group alone employs more than 50,000 registered workers, accounting for 10% of registered employees in Hong Kong's manufacturing sector, representing more than 50,000 families.

There's also the Global Group, with thousands of seafarers, dockworkers, and so on; Ping An Financial Group and Cheung Kong Holdings are also major enterprises that influence Hong Kong's economy.

Among the top five companies in Hong Kong, the World Group is undoubtedly the 'leader'. Although it has not disclosed its profits, everyone still ranks it first without hesitation. Some people predict that its profits are over US$100 million, which is at least twice that of HSBC. The second-ranked company is still Cheung Kong Industrial Group under the Chan family, which also earns more money than HSBC.

HSBC is third, and Cheung Kong Holdings is fourth. Both of these are listed companies, so their financial situations are relatively clear.

Fifth is Jardine Matheson, sixth is Ping An Financial Group, and seventh is Hongkong Land.
More importantly, MacLehose knew that the Chan family was by no means a local family. Chan Kwong-leung had more than one wife, but only one wife was publicly acknowledged in Hong Kong. He had learned while in England that Chan Kwong-leung had a mistress of white aristocratic descent—Audrey Hepburn—whose influence was considerable.

"Sir Chen, I have done some serious research over this period of time, but I still want to hear your opinion today. How do you think we should improve the situation that happened four years ago?"

What happened four years ago did indeed damage the British confidence, at which point they were ready to give up on Hong Kong.

Chan Kwong-leung said, “Regarding matters concerning people’s livelihood, I believe that with Lord MacLehose’s abilities and your background as someone who is not from a colonial background, you will definitely be able to bring about better changes to Hong Kong.”

Seeing this, MacLehose was quite pleased. Gaining this man's support was a very important thing. He even placed the Chan Kwong Leung family on an equal footing with the British tycoons as a whole.

There was no way around it; it was only through this period that he realized that in the eyes of the Hong Kong citizens, Chan Kwong-leung was the 'Governor of the Chinese,' and his influence was incomparable to that of other businessmen. Even among Chinese businessmen and celebrities, Chan Kwong-leung was an undisputed 'leader.'

So, MacLehose then said, "What kind of changes do you think are needed in Hong Kong's economy? As far as I know, you are very supportive of emerging technology industries, frequently donating to the science and engineering departments of the University of Hong Kong and the Hong Kong Polytechnic, and personally inviting overseas scholars and professors for them."

Chen Guangliang nodded and said, “Starting in the 1960s, the rise of South Korea and Taiwan, and their subsequent overtaking in traditional industries such as textiles and garments (due to their large population base), gave me some insights into Hong Kong’s economy. Hong Kong’s economy in the 1950s and 60s was mainly built on cheap labor and land resources. But when these no longer exist, or when South Korea, Taiwan, and Singapore have greater advantages, then Hong Kong has to seek change. A financial city? A foreign trade city? A tourist city? These are certainly things the government will consider. For entrepreneurs like myself, I hope to develop Hong Kong’s emerging technology industries. For example, my company, Midea Entertainment Games, invented the arcade machine, ushering in the era of electronic game entertainment. In just one year, we sold 2500 arcade machines, and each machine sold for US$1000 to US$1200. We have also achieved certain successes in yacht manufacturing, electrical and electronic products, and machinery manufacturing.”

MacLehose listened attentively, and later said with admiration, "I can hear your visionary perspective in this, as well as the hard work of the people of Hong Kong. I also know that Wing Cheong Yachts has become one of the world's top yacht manufacturers, exporting more than 3,000 yachts every year. Therefore, the Hong Kong government will give its full support to the upgrade of the Hong Kong Polytechnic to the Hong Kong Polytechnic University."

Without the success of Rongchang Yachts, Midea Group, and others, he would probably have doubted whether a colonial region with an underdeveloped industrial system could develop new high-tech industries.
But now, he has no such doubts; support is ultimately a good thing for Hong Kong.

Later, MacLehose took the initiative to ask for his opinion on the key 'new town'.

Chan Kwong-leung also said: "New towns are a very good proposal. Tsuen Wan, Tseung Kwan O, and Tuen Mun are all ideal areas for diversion and development. Hong Kong really can no longer concentrate its development on Hong Kong Island and Kowloon."

MacLehose nodded, and then asked, "What are your views on corruption in Hong Kong?"

Chan Kwong-leung also stated directly: "It depends on your determination. But I believe that society will always stand on the side of justice. If it's a good thing, the citizens will support it, and Britain's image in Hong Kong will be better reflected."

MacLehose was taken aback. Chan Kwong-leung's words were very blunt, implying that corruption in Hong Kong was very serious and that the citizens had been suffering from it for many years.

"Okay, I understand your opinion. Thank you, Mr. Chen, for having such a long talk with me today."

“You’re too kind. From the moment you arrived in Hong Kong, I knew that you would be different from other governors, because the London government sent a non-colonial official to manage Hong Kong, and there would definitely be new improvements.”

"Thank you very much"

Then I won't disturb your work.

"I see you off"

Their second meeting was relatively frank.

Of course, Chan Kwong-leung never expected a British person to completely solve Hong Kong's problems. He only believed in himself, that he could bring an indestructible industry to Hong Kong in this lifetime.

The first priority is to develop the science and technology industry, and the second is to develop the cultural industry.

In particular, the cultural industry accounts for as much as 20% of the economy in the United States and South Korea in later generations, which is what makes them true cultural powers; while in China it only accounts for about 4 to 5%, which means that China completely lacks cultural output.

In his previous life, Hong Kong in the 1970s and 80s had a cultural influence equivalent to that of South Korea in later generations, with Hong Kong films and stars being extremely popular in Asia. However, this influence was limited to Asia. In this life, Chen Guangliang aims to sweep the globe with a vast cultural industry encompassing 'Hong Kong pop culture,' 'Hong Kong comics,' and 'Hong Kong video games.'

Even in the 2020s, it can still remain a 'pearl' thanks to these influences.

日本于1971年12月将日元兑美元的汇率从360：1调整到306：1，升值16.9%。

At this time, the funds of Worldwide Shipping had already entered the Japanese securities market and completed the transfer. This investment alone could have enabled them to pay off their debts several months ahead of schedule.

Of course, World Wanderers would not pay off its debts ahead of schedule; that was just a comparison. In reality, many of its debts were due by the end of 1975, which is about six years after the ships were launched.

However, investing in Japan was a strategy devised by Chen Guangliang. The yen was expected to continue appreciating, and the return on yen assets was very high. The only concern was the oil crisis of October 1973 to December 1974. (End of Chapter)