A century-old wealthy family that rose from Shanghai

Time flies and it’s August in a blink of an eye.

The Middle East war broke out as scheduled.

Initially, Egypt and Syria attacked the Sinai Peninsula and the Golan Heights, respectively, which had been occupied by Israel six years earlier. The Egyptian-Syrian alliance gained the upper hand in the first day or two of the war, but the tide subsequently turned. By the second week, Syrian forces had withdrawn from the Golan Heights. In the Sinai Peninsula, Israeli forces attacked between the two sides, crossing the Suez Canal (the original ceasefire line).

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Arab countries imposed an oil embargo on the United States in response, triggering a surge in global oil prices and the 1973 oil crisis.

CK Asset Holdings Limited.

Chen Wenjie was very surprised recently. Although his father's judgment had always been very accurate, he still found it unbelievable that his father could predict the 'oil crisis'.

It was precisely because of his father's accurate prediction that the Chen family avoided losing so much wealth—no, it should be said that the Chen family will gain so much wealth in the future.

"dad"

Chen Guangliang put down the documents in his hand and said to Chen Wenjie, "Cheung Kong Industrial Group has always cooperated with the Canadian Imperial Bank. Later, have Wenkai introduce you to the CEO of this bank. We can discuss some cooperation, such as Cheung Kong Group listing some of its shares in Canada to expand its funding channels; at the same time, we can also cooperate with the Canadian Imperial Bank to establish a finance company in Hong Kong, and then cooperate in the real estate field. Through such cooperation, we can enter Canada in the future and start developing our global business."

The Yangtze River Industrial Group had a long-term partnership with a large North American wholesaler for plastic flowers and toys, and the Canadian Imperial Bank was the bank that partnered with the two companies.

Chen Wenjie immediately understood the deeper meaning behind this and said, "Okay, I'll go talk to Wenkai about this. Canada is the top choice for overseas Chinese to immigrate to. Its friendliness towards Hong Kong immigrants surpasses that of Australia and the United States. It is indeed a good place for overseas investment in the future."

Chen Guangliang said, "Of course, Canada is just one place for overseas expansion. The oil crisis will become more severe, the shopping mall project in Singapore will be launched, and next year we will buy up real estate in Japan at rock-bottom prices and invest in hotels and shopping malls, as well as invest in one or two office buildings in Manhattan, to initially complete a global layout. Of course, we also need to buy up real estate in the local market next year. We will ask Ping An Bank, Hang Seng Bank and others for support."

"Okay. Next, let the assets plummet for a while before we start making our move."

Chen Wenjie was also vaguely excited. With his father around, he knew this was a cycle, and these assets would definitely appreciate in value in the future. At this time, Cheung Kong Holdings not only had a large amount of cash flow, but also very low debt.

Once they buy at the bottom, they will completely distance themselves from other real estate companies, especially Hongkong Land. Of course, Chen Wenjie also understands that Hong Kong is already too small for Cheung Kong Group at this point.

As an energy-importing city that doesn't produce a drop of oil, Hong Kong is naturally not immune to the impact of this crisis. As for what citizens and the government can do, it seems there's nothing else they can do besides trying to conserve and reduce consumption.

Since the oil supply at that time was mainly controlled by the six major British and American oil companies, when OPEC raised oil prices, Hong Kong oil companies naturally passed on the costs to consumers and quickly increased oil prices.

In fact, since the beginning of 1973, due to the tense situation in the Middle East, some oil-producing countries had reduced production, causing international oil prices to rise steadily, and Hong Kong oil prices followed suit. On January 2 of that year, the six major British and American oil suppliers that had been dominating the Hong Kong energy market—Shell, ExxonMobil, Goldwell, Texaco, Peninsula, and Standard Oil—announced that, citing the rise in international oil prices, they would raise the prices of petroleum and related products starting January 3, with an overall increase of 4.5%, which greatly affected many oil-consuming industries such as transportation, plastics production, and chemical fiber manufacturing.

About six months later, on July 4, the six major oil companies once again raised prices, citing increased costs. This time, the overall increase was about 5.0%.

On October 25, after the outbreak of the Middle East war, the oil company announced a third price increase, citing a sharp reduction in international crude oil supply. This time, the average increase was 4.5%.

Amid soaring oil prices, the Hong Kong government announced on November 10 the establishment of a Petroleum Policy Committee dedicated to studying policies and measures to address the oil shortage problem.

When Hong Kong faced an oil shortage, the mainland, a close neighbor, decided on November 19 to increase oil exports to Hong Kong to alleviate the city's energy shortage. In response to this move by the opposing government, the Sing Tao Daily, which has a consistently critical stance, quoted Lim Tong, Chairman of the Petroleum Policy Committee and Deputy Chief Secretary, in an article titled "Mainland Kerosene Arrives with Increased Quotas," to explain the view that mainland fuel exports to Hong Kong would help alleviate the city's energy shortage.

Fuel supplied to Hong Kong from the mainland responded promptly to the call and increased imports. The citizens are deeply grateful for their assistance. In fact, the fuel supplied from the mainland will help alleviate any potential energy shortages Hong Kong may face in the future.

Just as ordinary citizens were applauding the increased fuel shipments from the mainland to Hong Kong, oil companies such as Shell and ExxonMobil announced their fourth price increase for oil and related products on November 26. This time, the increase was as high as 13.7%, further burdening industrial production, business operations, and residents' lives.

During the 'fourth increase in the price of petroleum and related products,' Chan Kwong-leung, with the intention of making a contribution to Hong Kong, also urgently consulted with the Petroleum Policy Committee.

Sir Robert Ho Peck, then known as the Colonial Secretary (later renamed the Chief Secretary), asked expectantly at the meeting, "I've heard that Sir Chan can provide oil for Hong Kong. Is that true?"

He was transferred from the Department of Justice to the Colonial Secretary just last month, a first in Hong Kong. The Colonial Secretary is essentially equivalent to the 'Prime Minister,' and he is naturally anxious about the sharp decline in Hong Kong's economy due to the oil crisis.

Chen Guangliang said, "Yes. I have invested in oil depots in Japan, Singapore, and Malaysia, and I also have 12 tons of oil on oil tankers at sea. If permitted, I can also supply a certain amount of oil to Hong Kong."

This move doesn't necessarily offend Shell, ExxonMobil, Goldman Sachs, Texaco, Peninsula, and Standard Oil (which are also Global Oil's clients), since the Hong Kong market is extremely small for them; moreover, the countries behind these six oil companies are themselves short of oil and have no interest in Hong Kong.

The members of the Petroleum Policy Committee were all delighted. Everyone knew that Chen Guangliang was the "Shipping King of the World" and had very good relations with Middle Eastern countries, but they never expected that he could acquire so much oil and build so many oil depots.

Sir Robert Roth said happily, "If possible, we hope that Mr. Chan will immediately allocate the 12 tons of oil for Hong Kong, and provide at least another 20 tons next year to alleviate the oil shortage. As for the procedures, the Hong Kong government will grant them immediately and expedite the process."

"it is good"

Chen Guangliang was very straightforward; he was making money anyway, so there was no question of him doing anything good. But the key issue now is that even with money, you can't necessarily buy oil. It's said that the price has risen to $13 per barrel, but it won't be that price once it's shipped to Hong Kong. More importantly, global resources are scarce, so being able to get your hands on oil is what truly matters.

Even the US president has to conserve oil during his travels, which shows how tight the global oil supply is.

Just as Chen Guangliang was busy coordinating oil supply to Hong Kong, a transoceanic phone call from Tokyo disrupted his schedule—the Japanese Prime Minister's office had officially invited him to Japan for a meeting immediately. When the news spread, the outside world assumed it was simply a courtesy call from officials due to the Chen family's deep investments in Japan; no one knew that the core of this meeting was the ownership of the 200 million tons of oil in the Kagoshima oil depot.

At that time, Japan was already in a corner due to the oil crisis. As a country with almost no domestic energy, the Middle East oil embargo had put its industrial production in a very precarious state. The oil storage base that Chen Guangliang invested in in Kagoshima was one of the few readily available reserves in Japan at that time that "had oil available".

Although the Japanese government is eager to acquire this batch of oil, it is hesitant to act rashly. Chen Guangliang is not only the "world's shipping magnate" with far-reaching influence in the global shipping and energy sectors, but also a long-term partner. Applying pressure rashly would only backfire. The only option is to seek a negotiated solution through an "official invitation."

Chen Guangliang didn't put on airs and quickly flew to Tokyo. On the day of the meeting, the Japanese Minister of Energy, along with executives from oil companies and the president of Mitsui & Co., waited early in the conference room, their faces filled with barely concealed eagerness.

As soon as he sat down, the Energy Minister got straight to the point: "Mr. Chen, Japan is currently facing an energy shortage and urgently needs the 200 million tons of oil from your Kagoshima oil depot. Please agree to sell it immediately! As for the price, we will definitely offer a reasonable price and ensure that you do not suffer any losses."

Before he could finish speaking, the president of Mitsui & Co., Ltd. immediately followed up with an even more significant proposal: "In order to solve the energy storage problem in the long term, we hope to acquire 80% of the shares of the Kagoshima oil storage base! In the future, this base will fully serve Japan's energy storage needs. We hope Mr. Chen will agree to this."

It should be noted that this oil storage base was originally a joint venture between Global Shipping (holding 80% of the shares) and Mitsui & Co. (holding 20% ​​of the shares). Mitsui's proposal to acquire 80% of the shares at this time is actually an attempt to completely control this "emergency oil depot".

Chen Guangliang had already made his plans, but on the surface he remained calm: "Japan has always been an investment destination that I value. I am naturally happy to sell oil to local companies. But why is Mitsui suddenly in such a hurry to acquire shares when the oil storage facility was only recently completed?"

Seeing that he could no longer hide the truth, the president of Mitsui & Co., Ltd. simply admitted: "After the outbreak of the oil crisis, Japan has decided to expand its oil reserve base on a large scale. The existing base in Kagoshima can save us a lot of time and costs. Your investment has indeed solved Japan's urgent problem, and we will definitely provide generous compensation."

Chen Guangliang knew that it would be pointless to antagonize the Japanese government and business community at this time. Moreover, selling oil and equity was already part of his plan. He had built the oil depot because he was looking at the premium that the oil crisis would bring, and now the time was just right.

He immediately nodded: "Since it's for Japan's energy stability, we can discuss these two deals properly."

A sigh of relief instantly filled the conference room.

Everyone knew the significance of these 200 million tons of oil—at that time, global oil was scarce, and it was difficult to buy even if you had the money. If Chen Guangliang hadn't secured a purchase contract with Middle Eastern countries in the second half of last year and shipped the oil to Japan at the beginning of the year, Japan would probably be almost out of oil at this time.

This seemingly "courtesy" official meeting ultimately concluded with a private negotiation, finalizing the framework for the oil and oil storage facility equity transaction. For Japan, the 200 million tons of oil provided immediate relief, while the acquisition of the oil storage facility equity laid the foundation for long-term energy reserves. For Chen Guangliang, he not only earned substantial profits from the oil premium but also sold non-core assets at a reasonable price, further solidifying his relationship with the Japanese business community and government, paving the way for future investments in Japan.

After finalizing the oil storage agreement in Japan, Chen Guangliang did not leave immediately. He visited several places in Tokyo, planning to make a major foray into the Japanese real estate industry next year and hold the properties until the late 1980s before selling them.

After a brief inspection, he returned to Si Yezi's villa and summoned Chen Wenying back.

"How is Electronic Arts doing?"

Although Chen Wenying will not graduate from the University of Tokyo until next summer, he is already half studying and half working at EA, especially participating in EA's 'arcade project'.

Chen Wenying knew that Electronic Arts Company was set up for him by his father; otherwise, given his current gains from investing in securities and real estate, there would be no need for him to endure this hardship. Therefore, he has been working part-time at Electronic Arts Company since he started university, and it has been three and a half years now.

"Father, the arcade game Gun Fight has basically completed its development and is currently in the final testing phase. It is expected to be sold in Japan early next year. Gun Fight uses Intel's integrated circuits and is the world's first video game that depicts battles between people. We all think it can be as popular as 'Ping Pong Arcade'."

When discussing technology, Chen Wenying appeared very confident; his current skill level is extremely high. However, he didn't boast in front of his father, knowing that his father understood the product better than he did.

Chen Guangliang said, "It's great news that it can be released next year. I predict that the oil crisis will inevitably affect the laser shooting system business. If Gun Fight can fill the gap, EA can develop steadily, and by 1975, EA can enter the game console industry."

Chen Wenying became excited and said, "I will definitely listen to my father. By the way, in addition to developing Gun Fight, EA is also starting to develop other arcade games. We want to fully develop in the field of video games."

He worried that this would put EA in competition with Hong Kong's Midea Entertainment Games, which might be a bad thing, but after all, EA was founded at his father's behest.

"Well, that's no problem. I had you set up a video game company because I wanted you brothers to compete with each other, but to monopolize the global industry."

"Yes, Father, I will definitely not let you down."

Later, Chen Guangliang told Chen Wenying to go to work and not to accompany him.

Meanwhile, Chen Wensheng and Chen Yingyi were still in school, so naturally only Chen Guangliang and the women remained in the villa.

First, lunch.

Chen Guangliang and Si Yezi were eating at a small restaurant, where they used Chinese-style dining tables.

The housekeeper, Yukina, and her assistant, Naomi, had changed into maid outfits. Yukina served the two of them their meal, while Naomi slowly knelt down and approached Chen Guangliang's seat.

"hiss"

"sizzle"

Si Yezi watched this scene with a calm demeanor. This was the only thing she could do for her man. The important thing wasn't for him to enjoy himself, but to ensure he had no worries and to prevent Xue Nai and Nao Miharu from having any improper thoughts. (End of Chapter)