A century-old wealthy family that rose from Shanghai

Time flies, and in the blink of an eye, it's the second half of the year (1986).

Beginning of November.

The headquarters of Cheung Kong Holdings remains in the Poly Tower on Pedder Street, as the Cheung Kong Centre at 2 Queen's Road Central has only just begun construction and is not expected to be operational until 1990.

In the chairman's office of CK Asset Holdings, Chen Wenjie, who is 53 years old this year, still looks young and vigorous, and looks like he is in his forties.

He started working at the age of 21 and has been working in the business world for 32 years. To sum up his life over the years, he would say it was like "walking on thin ice".

His father entrusted him with a vast empire, and he never forgot to safeguard the family business and seek steady development. Furthermore, he is the main manager of the "Chen Guangliang Family Office" and the "Chen Guangliang Foundation," after all, he is the second-generation head of the family.

Chen Wenjie officially assumed the position of Chairman and Managing Director of CK Asset Holdings Limited on January 1, 1980, and it has been almost seven years since then.

"Father"

Three young people entered Chen Wenjie's office; they were three of his four children.

The eldest son, Chen Zerui, is 28 years old this year. He has been with CK Asset Holdings for six years and currently serves as a director of CK Asset Holdings.

The eldest daughter, Chen Siqi, is 25 years old this year. She just graduated with a Master of Laws degree from Oxford University and officially joined Cheung Kong Holdings as an overseas legal advisor.

The second son, Chen Zeli, is 22 years old this year. He graduated from university last year and joined his uncle's Amazon Realty. Now he has been called back to Cheung Kong Group to participate in the overseas development of the Cheung Kong Group.

In addition, Chen Wenjie has a son who is studying at a university in the United States.

All three sons and one daughter will join Cheung Kong Holdings in the future.

According to their grandfather's arrangement, all four children have been listed as beneficiaries and heirs of the 'CK Asset Trust Fund,' meaning they will not separate from the family business. If any of them wishes to start their own business, they can only enjoy the dividends from the CK Asset Group and will not be eligible to sell shares or engage in related matters.

Today, Chan Kwong-leung has divided the family’s 75% stake in Cheung Kong Holdings into two parts. One part, 25% of the Cheung Kong Holdings shares, has been donated to the “Chan Kwong-leung Foundation”, but the foundation can only enjoy the annual dividends, which will be used for charitable purposes. The other 50% of the Cheung Kong Holdings shares will be passed on through a trust, with him and his son Chan Man-kit each holding 25% of the equity. As for the third generation, they are merely beneficiaries and heirs.

In reality, Chen Guangliang rarely takes the dividends from CK Asset Holdings Limited; instead, he lets Chen Wenjie keep them for private investments or to support his children in the future.

"I've gathered the three of you here to tell you something: this year's oil price crash presents a good opportunity to invest in energy. Fortunately, Boris, the president of the Canadian Imperial Bank of Commerce, and I have a close relationship, and he's willing to act as a go-between for us to consider acquiring Husky Oil in Canada. Of course, we're still in the early stages of discussions, but all three of you can participate."

Chen Zerui spoke first: "Dad, Canadian energy companies need local people as legal representatives, right?"

Chen Wenjie nodded and said, "You're right! But your grandfather had this foresight back then, so he arranged for Ze Li Secondary School students to spend their final year in Canada and obtain Canadian passports. Therefore, this acquisition is one in which Hutchison Whampoa and HK Electric hold the majority stake, while Ze Li holds a minority stake. And Ze Li's shares also belong to the trust portion of our little family."

Chen Wenjie also sets up a trust fund to invest the annual dividends from CK Asset Holdings.

Their expenses were actually negligible; they couldn't even spend all the regular living expenses provided by the family office.

"Okay, Dad!"

Then, Chen Wenjie added, "Siqi, as the overseas legal counsel for Cheung Kong Holdings, Canada is an important base for our overseas development. I hope you will pay close attention to the local legal system."

Chen Siqi said, "Yes, Dad. They're both based on the British legal system, so they're pretty much the same. I'll get used to it as soon as possible."

Chen Wenjie smiled and said, "Yes. By the way, your grandfather said he wanted to give you a villa in Vancouver, and it's all ready."

Chen Siqi's eyes lit up and she immediately said, "Then I have to have Grandpa personally take me to the new house!"

Chen Wenjie said helplessly, "That means you."

I really didn't say anything more!
His father was not stingy with his four daughters, his four younger sisters. The eldest sister, Chen Leyi, received the Amgen biopharmaceutical business in the United States; the second sister, Chen Mengyi, received half of the shares in a Hong Kong media group (the other half is held by the Chen Guangliang family office and Ping An Investment respectively); the third sister, Chen Daiyi, was the most regrettable, as she missed out on the status of heir to the family business because she married into a British ducal family, but she also received 25% of the shares in 'Harrods Group' (i.e., a department store and luxury group) and continues to serve as a director; as for the fourth sister, Chen Yingyi, she currently has assets in Japan.

However, some changes occurred in the third generation.

Although Chan Sze-ki enjoys the rights of a third-generation beneficiary and heir of the 'CK Asset Trust Fund', there are strict regulations that she will only enjoy dividends in the future, but her children cannot inherit them. However, the family will buy back the rights she holds at the market price.

This is one way Chen Guangliang avoids diluting the family business. The third-generation girls have the right to 'profit sharing' but not the right to take away the shares, which means they cannot take away the family's shares. By the fourth generation, they only have the right to profit sharing, but there is no such thing as inheriting shares.

Then, Chen Wenjie said to Chen Zeli, "You need to get started with real estate matters as soon as possible. Vancouver is hosting the World Expo this year. Once it's over, the Expo site will be vacant, which is an opportunity for us to enter the Canadian real estate market. I hope you can learn from this project."

Chen Zeli's spirits lifted, and he immediately replied, "Yes."

The Cheung Kong Group is enormous, and the inclusion of family members doesn't affect anything. As for family members who are capable, becoming president or general manager is certainly fine.

However, if a family member is not competent, then the position of director is the only suitable option.

Currently, Chen Zerui, the third generation and the eldest grandson, is the most valued by Chen Guangliang and has been preliminarily designated as the 'patriarch' of the third generation.

After all, Chen Zerui grew up under Chen Guangliang's guidance and was nurtured with the utmost care.

Watching his three children leave, Chen Wenjie began to ponder.

His initial plan for his children's future is as follows: the eldest son will take overall charge and is expected to succeed as chairman and president of Cheung Kong Holdings in the future; the second daughter will be groomed to be the group's legal representative and will also serve as a director; the third son will join the European and American business division; and the fourth son will join the Asian business division.

In reality, they also hoped that the second, third, and fourth sons could assist their older brother.

Tokyo.

Located in the bustling Chiyoda Ward of Tokyo, the Shangri-La Hotel is an international luxury hotel that blends modern and traditional styles.

The property and management rights of this hotel belong to the Shangri-La Hotels and Resorts group, so its value is naturally considerable.

Generally speaking, many luxury hotels are owned by one person, but managed by another. The property is essentially real estate, while management rights are the core of the hotel industry.

Cheung Kong Holdings began investing in Japan in the 1940s and 50s. Among its core assets are six properties in Ginza and the Shangri-La Hotel, but these were all investments made before the 1980s. The properties invested in after the 1980s are much more diverse.

In a private dining room at the Shangri-La Hotel, Chen Wenming was hosting a dinner for his three younger siblings, Chen Wenying, Chen Wensheng, and Chen Yingyi.

"This time, Wharf Holdings' investment in Japanese real estate and securities was made possible thanks to you three 'local experts,' enabling us to quickly complete an investment of 100 billion yen in just three months. During this period alone, the yen also appreciated slightly." Currently, the USD/JPY exchange rate has fallen to around 155. Investments made in Japan in April were priced at 175-180, indicating further appreciation of the yen.

"Third Brother, you're too kind! Let alone a mere 6 million US dollars, even 20 billion US dollars would be a matter of course very quickly," Chen Wensheng said with a smile.

The brothers had a deep bond, and he also knew that the strategy of investing in Japan was decided by their father.

Their family has made a significant investment in Japan.

At this time, the Japanese real estate and stock markets had not yet officially begun their rapid upward trend. However, the yen had already appreciated by 70% since the Plaza Accord, so people's investment actually increased very quickly.

Although Chen Wenying, Chen Wensheng, and Chen Yingyi are Japanese citizens, they habitually position themselves as 'international entrepreneurs,' so the issue of expanding their assets overseas will inevitably arise later.

Chen Wenming laughed and scolded, "You brat, do you think I'm not capable?"

Chen Wensheng quickly replied, "Third Brother, you're joking. You were once the most capable heir!"

“That’s ancient history,” Chen Wenming waved his hand, but his expression was not dejected. He said, “Now shipping can only survive. If it weren’t for Father’s command to go ashore and seize the worst opportunity, I, as the heir, would be in trouble. So, the conditions Father created for us are truly wonderful!”

When talking about their father, Chen Wenying, the most filial among his siblings, immediately said respectfully, "Indeed, the empire that our father built for us fifteen siblings is so solid. If he can continue to guide us, that would be our blessing and good fortune."

"Don't worry, Father is in good health, but we must also strive to do our best."

"Yes"

Chen Wenming then raised his glass and said, "Come on, this meal is on me, to thank everyone for their support!"

"should"

Today was originally Chen Wenming's treat to his three younger siblings to thank them for helping Wharf Holdings quickly complete its investment in Japan. The investment was US$6 million, of which US$4 million was a loan, and Chiba Bank, owned by Chen Wenying and Chen Wensheng, was one of the lenders.

At that time, the Chen family had a large presence in Japan, with investments exceeding tens of billions of US dollars; of course, the two brothers, Chen Wenying and Chen Wensheng, alone accounted for more than half of it.

Japan became the world's second-largest economy in 1978, and its market size is enormous, with a total stock market capitalization of trillions of US dollars.

This surge in Japan's stock market actually began at the end of 1986, due to various policies introduced, such as reducing cash interest rates from 5% to 2.5%, which led to a large influx of funds into the real estate and stock markets.

After three rounds of drinking.

Chen Wenming teased his younger sister, "Yingyi, you should find a boyfriend too! Look at your three older sisters, they said they wouldn't get married when they were young, but in the end, their father still urged them to get married. You don't have to be like your two older sisters and wait until you're thirty to get married."

Chen Yingyi boldly declared, "If I'm going to get married, I'll marry a Chinese man. If you know anyone suitable, Third Brother, could you introduce me?"

No one was surprised by these words.

Regarding their children's views on marriage, the father hoped that his son would marry a local 'native' and integrate into the local community, while the daughter hoped to marry a Chinese man.

Chen Daiyi clearly failed to grasp this meaning, thus missing the opportunity to inherit the company, and some core family matters gradually drifted away from her.

Chen Wenming said, "Haha, no problem, I guarantee I'll introduce it."

Chen Yingyi said with satisfaction, "Yes. However, although I want to marry a Chinese man, I want my husband to develop his career in Japan."

Chen Wenming nodded and said, "Of course!"

The younger sister has her own career, mainly in Japan, so it's natural for her to leave. Moreover, given the strength of the Chen family's daughters, it's quite normal for her to "recruit a son-in-law."

A month later.

Chen Guangliang personally listened to Chen Wenjie's report on Cheung Kong Group's overseas investments.

“Father, Husky is still in contact with them. Its parent company, Nova Corp, has expressed interest in selling 57% of the shares. As for the price, we are still negotiating.”

When Chen Wenjie reported on this matter, he remained very calm.

Chen Guangliang then asked, "What price did you instruct the negotiation team to pay?"

Chen Wenjie immediately said, "Given the current plunge in oil prices, my offer to the negotiating team is no more than 11 Canadian dollars per share. I think this price is reasonable, so I do not intend to back down."

Not bad!

Oil prices fell from $33 a barrel at the beginning of the year to just over $10 a barrel. And for the next few years, oil prices did not recover until after the 1990s.

Therefore, Hutchison Whampoa has plenty of time!
"Okay. Let Ma Shimin, Huo Jianning, and the others handle the negotiations!"

In this negotiation, Hutchison Whampoa's CEO Simon Murray was the head, but he was subject to the boss's 'price control'; Canning Fok was the audit and accounting supervisor, and he needed to provide price recommendations.

In addition, Hutchison Whampoa has a 20-person legal team that negotiates each clause in detail. Chen Guangliang's granddaughter, Chen Siqi, is one of the team members.

Therefore, this acquisition can be considered a major undertaking.

Hutchison Whampoa has been venturing overseas for nearly a year, and foreign media have described it as "waving $20 billion" while searching for Western companies to acquire.

So far, the results have been minimal, with only the acquisition of a few British paging companies and the start of preparations to develop mobile communication services in Hong Kong.

Next, Chen Guangliang offered his suggestions: "Hutchison Whampoa is currently well-funded. While dealing with overseas investments, I also hope to enter the biopharmaceutical field, which is a very promising industry. In addition, could we develop the Chinese medicine field, or extend it to Chinese medicine-based cosmetics? As for the development of Hong Kong fashion, Hong Kong cosmetics will definitely be very popular among Hong Kong fashion fans, so these are things that need to be developed in advance."

His children understood the Hong Kong pop culture phenomenon; their father was planning a similar "Hong Kong pop culture" to Hollywood, and the establishment of Era Management was the best proof of that.

"Okay, I'll have Hutchison Whampoa make the preparations right away!"

The father and son chatted for a while, and even though Chen Wenjie was over fifty, he could still feel the sense of security his father gave him. (End of Chapter)