A century-old wealthy family that rose from Shanghai

On this day, Chen Guangliang arrived at the site of the Ping An Bank Building at No. 1 Garden Road, where construction was in full swing.

The new Ping An Bank Building broke ground in November 1980 and was expected to be put into use in early 1985.

The new building will be 72 stories tall, and together with the Freedom Tower, it will become the tallest skyscraper in Hong Kong. The bottom twelve floors are square, while the top sixty floors are designed with an octagonal triangular shape, symbolizing Hong Kong's spirit as a 'free port'.

As for the cost of the building, it was HK$36 billion. If the purchase of the site (which included the parking lot) is included, the total investment was nearly HK$50 billion.

The cost was staggering.

Of course, as a listed company, Ping An Bank's profits of over HK$3 billion from gold investments were enough to keep investors up at night with excitement.

Ping An Bank, as the first Chinese-owned bank in Hong Kong, while not as high as HSBC in terms of deposits, has surpassed Standard Chartered Bank to become a giant in Hong Kong's retail banking business. Moreover, its 61% stake in Hang Seng Bank further strengthens its backing.

Conversely, HSBC's development in Hong Kong was not as good as in its previous life. It not only lost Hang Seng Bank, but also lost a large amount of personal retail banking business.

On the construction site, not only were construction workers busy at work, but also American designers and engineers could be seen from time to time. They were third-party participants, after all, they were the world's most skilled designers and builders of skyscrapers.

As for the Chinese-American design master I.M. Pei, his expertise is not in skyscrapers. Moreover, the exterior design of the new Ping An Bank building was personally designed by Chen Guangliang, with the focus on the internal structure.

“Dad, HSBC has announced that it will spend HK$50 billion to rebuild the building, and it is said that it plans to build an all-steel structure.” Chen Wensheng, who was wearing a hard hat, mentioned something.

Upon hearing this, Chan Kwong-leung was not surprised and said, "It's meaningless to compare who has more money. If we're going to compare, we should compare who has more ideas and who can better represent Hong Kong's landmark buildings."

He was very confident in his design.

Ping An Bank Tower, also known as the 'Freedom Tower', symbolizes Hong Kong's status as a free port and is a key to Hong Kong's success.

To be honest, Chen Guangliang is quite concerned about his reputation. For example, when designing the octagonal triangle of the Freedom Tower, he asked the designer to make the corners flat rather than sharp, so as not to cause dissatisfaction among the owners of surrounding buildings.

Of course, this 'flat shape' is very small, and you can't see anything about it at first glance. Only by getting close can you discover its secrets.

"Let's go back to the Chinese Building!"

"it is good"

After the inspection, Chen Guangliang and Chen Wensheng returned together to the temporary headquarters of Ping An Financial Group.

How is the cash-out from Hong Kong securities progressing?

In the office, Chen Guangliang was concerned about a certain topic.

Hong Kong's securities and real estate sectors have clearly reached a high level of development, and it's time for an orderly exit in preparation for a comeback.

Chen Wensheng immediately said, "Everything is going according to plan. We expect to complete the full cash-out by the end of the third quarter, holding only securities of companies related to the Chen family. At the same time, some of the cashed-out funds will flow into Japan and the United States to complete the shareholding increase plan."

Chen Guangliang said with satisfaction, "Very good."

At this time, Ping An Investment, in addition to global securities investment, naturally also had many other businesses, including bond investment, assisting with IPOs, and investment in other financial products.

The fact that it manages dozens of trust funds of a certain size fully demonstrates its status in the financial field.

Ping An Bank and Ping An Investment belong to different management systems.

Ping An Bank is a listed company, and its CEO is an external appointee, while Chen Wensheng serves as the chairman of the board.

Ping An Investment is a private investment firm, with Chen Wensheng serving as its president.

"Next, you should push for Ping An Bank to lower its loan-to-deposit ratio to a safe level, and secondly, push for Ping An Bank to maintain a high level of US dollar reserves over the next two years. As for the future of Hong Kong, it may have to be brought to the forefront within one or two years, at which time Hong Kong will inevitably experience a political crisis. The US dollar to Hong Kong dollar exchange rate of 5.6 will certainly not be maintained; I prefer 8. Of course, these two things should be done discreetly, and there is ample time to push them forward."

He is no longer afraid of bank runs, because Ping An Bank's status among Hong Kong citizens is no less than that of HSBC and Standard Chartered.

Ping An Bank is backed by three major conglomerates: Cheung Kong Holdings, Cheung Kong Holdings, and Global Group, giving it a very solid foundation. Furthermore, the Chen family's influence in Hong Kong has long surpassed that of HSBC, which also guarantees its credibility.

Chen Wensheng was slightly surprised, but quickly regained his composure and said, "Yes. If we follow Father's wishes, then Ping An Investment should also purchase US dollar or Japanese yen assets as much as possible."

“US dollar assets are the best option. As for Japanese investment, it has basically reached its limit, and the yen is likely to appreciate for some time.”

"Ok"

Today, the four brothers of the first wife have become the four pillars of Hong Kong's business, allowing Chan Kwong-leung to retire behind the scenes with peace of mind.

Since the 1980s, Chan Kwong-leung has not appeared in Hong Kong media (though he may appear in mainland media), and he rarely participates in Hong Kong business activities. He has almost given the impression of fading out of the business world.

Even when the Ping An Bank Building was being built, it was Chen Wensheng who accompanied the Governor of Hong Kong to shovel soil.

At this point, the competitors will likely be complacent, thinking that although the "Four Tigers of the Chen Family" are formidable, they are certainly not as experienced as Chen Guangliang, and may even be waiting for the Chen family to make a mistake.

Therefore, Chen's "cash-out actions" went unnoticed at this time; for example, the sale of the old wing of the Miramar Hotel was even considered a harbinger of Chen's "decline".

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

On this day, Zhuang Zhujiu officially stepped down as chairman of the board of directors of Times Pictures. By then, he had already sold almost all of his shares, leaving only 1% as a memento.

Meanwhile, Chen Wensheng, president of Ping An Investment, became chairman of the board of directors of Times Pictures, Chen Mengyi remained an executive director, and Raymond Chow remained the CEO.

According to the Sing Tao Daily, Zhuang Zhujiu, as one of the founders of Times Film, cashed out this time, which was seen as "stepping down". Of course, the Chen family did not treat Zhuang Zhujiu unfairly. Hutchison Whampoa sold most of its TVB shares to Zhuang Zhujiu, making him the largest shareholder of TVB and serving as the chairman of the board and general manager.

According to Ming Pao, since the Chan family took over Asia Television, they have implemented a "cost reduction and efficiency improvement" strategy and managed the television station in a business-like manner, resulting in Asia Television still being far inferior to TVB. This has caused investors in Asia Television who had always placed their hopes on the Chan family to back out.

The conference room of Asia Television.

George, representing RTV Britain, Charleson, deputy general manager of Jardine Matheson, Michael Kadoorie of the Kadoorie family, and other shareholders of Asia Television gathered together.

At the start of the meeting, George stated, "Given Asia Television's situation over the past year, we hope the Chen family will purchase all the shares we hold." If they delay any longer, they fear Asia Television might disappear like CTV, leaving them with nothing.

As chairman of Asia Television, Chen Wensheng deliberately said, "Ladies and gentlemen, Asia Television is still undergoing restructuring, but it still has a promising future."

Believe it or not!

It's unsettling to have a financial investor as chairman of the board and a 29-year-old woman as CEO.

George said firmly, "Since the Chen family is so confident, then please buy back the shares we hold."

The other shareholders nodded in agreement, clearly not wanting to delay any longer.

They believed in Sir Chan Kwong Leong, but not in the two second-generation Chan family members in front of them.

“Alright,” Chen Wensheng said after thinking for a moment, “In that case, let’s use the price from a year ago and invest HK$1 million to buy the remaining 50% stake.”

Once we've taken the initiative, there's nothing to worry about anymore!
This price is quite reasonable. Although all assets in Hong Kong have appreciated in value this year, this obviously does not include Asia Television.

"no problem"

At this point, no one cared about anything else; if they could get back 100 million, they should grab it quickly!
Chinese people travel.

After hearing Chen Wensheng and Chen Mengyi's report, Chen Guangliang immediately made arrangements: "Now that Asia Television is wholly owned by us, the next step is to spend money to compete with TVB. Speaking of spending money, Zhou Liangshuyi of CTV is an expert in this area. You should hire her as CEO, Mengyi as Chairman of the Board, and Wensheng, you should become a director."

Chen Mengyi quickly said, "Father, how about letting Fifth Brother serve as Chairman of the Board for a while longer? I'll serve as Executive Director first, and then I'll serve as Chairman of the Board after I've learned my lesson."

Chen Guangliang glanced at his daughter and said with a smile, "Okay. But I can make it clear to you that in the future I will be constantly monitoring and guiding Asia Television, and you will be my..."

Chen Mengyi, acting as a "chess piece," spoke first: "I understand. I promise to treat my father's words as sacred decrees and carry them out strictly!"

"You girl"

Chen Guangliang chuckled and then said, "Give Zhou Liang Shuyi three to five years first. My plan will not be officially implemented until the mid-to-late 1980s. That being said, the money-spending trick is actually very simple: poach talent from TVB and start a war with TVB. Don't worry about the fact that the other party is your Uncle Zhuang. Remember, there are no fathers and sons in the business world. Moreover, Hong Kong television stations need to be owned by two companies, not just one."

"Yes"

If money is spent, and with the addition of veteran TV personality Chow Leung Suk-yee, they should be able to maintain a 40/60 split with TVB. Then, in the mid-1980s, they could begin developing "Hong Kong pop culture," and by the 1990s, it would be on the right track.

By 1981, Hong Kong's property market had become stagnant, with a significant increase in vacant units. In 1980, the vacancy rate of newly built residential buildings had reached as high as 41.3%, with a large number of units remaining in the hands of speculators of all sizes.

Interest rates continued to rise, leading to a contraction in credit from banks and finance companies. In the late 70s, Hong Kong's economy began to overheat, with inflation exceeding 15%. However, in 1978, the average preferential interest rate in Hong Kong was only 6.68%, while the average mortgage rate was 10.62%, creating an ever-increasing demand for funds. During this period, the Hong Kong dollar exchange rate weakened due to a growing trade deficit (the real estate boom led to a surge in imports of building materials, further increasing the trade deficit), stimulating interest rate increases. In 1980, US President Reagan took office and implemented a tight monetary policy to combat inflation, further pushing Hong Kong interest rates up sharply.

On September 17, 1981, Hong Kong’s prime lending rate rose to a historic high of 20%, and mortgage rates rose even higher to 21%, which had a huge deterrent effect on homebuyers.

During this period, the Hong Kong government revised its land sale policy, abolishing the "installment payment for land purchase" policy, which made the cost (interest) of land purchases even heavier for developers.

All indications suggest that a property market adjustment in Hong Kong is inevitable.

However, under these circumstances, many entrepreneurs still believe that it's okay to make adjustments, as prices will soon resume rising.

At that time, news broke in Hong Kong that the Hong Kong government was going to hold a public auction for the land of the Central Bus Terminus.

With virtually no land available for development in Central, the allure of a prime commercial site of 14.4 square feet in the heart of Central is undeniable.

Soon, commentators and experts predicted that the total price of the land could exceed HK$75 billion.

Even Lu Xiaoqing, the head of real estate at CK Asset Holdings, told the media, "This prime piece of land is worth at least HK$80 billion!"

In no time, major Hong Kong conglomerates were sharpening their knives, and overseas conglomerates also began to pay attention to this piece of land.

Based on current price forecasts, this "Central Land King" plot is undoubtedly the most expensive and highest-priced plot of land in the world, reaching an astonishing level.

Land acquisition.

Bobby Da excitedly told Newbikin, "This is our chance. This time we must defeat Cheung Kong Holdings."

Newbridge nodded in agreement.

The two of them are not from the Keswick family; they were nominated by non-Keswick family shareholders of the Jardine Matheson Group, so they are actually in a certain 'opposition' to the Keswick family.

Moreover, since 1980, Hongkong Land has tasted the sweetness of real estate dividends, especially the building they sold to Caring Group, which earned them hundreds of millions of dollars; as a result, Hongkong Land quickly changed its strategy and became a big friend of real estate investment.

Large-scale projects such as the Baibishan villa complex, the Queen's Park project in Central, the old wing of the Miramar Hotel, and the Mid-Levels Ligand Court are all being launched one after another.

Now, they are setting their sights on a mega-project with an investment of tens of billions, while Jardine Matheson's total assets are probably less than 200 billion (market value of 150 billion).

Cheung Kong Holdings' market capitalization is as high as 350 billion, which is 1.75 times that of Hongkong Land. Hongkong Land actually dares to dream of defeating Cheung Kong Holdings, which shows that Bovet and Newbikin have reached a crazy level.

Newbikin later said, "But if this piece of land really is worth HK$80 billion, our debt will be enormous."

Paul Beebe said with a smile, “I don’t think it matters. With Hong Kong’s current economic development, property prices will inevitably continue to rise. As long as property values ​​appreciate, we at Jardine Matheson will be able to make greater profits, and banks will trust us more. Moreover, since HSBC intends to suppress the Chan family, it will definitely provide strong support for our loans at Jardine Matheson.”

"Okay, this project is absolutely worthwhile."

The site is 14.4 square feet, and the commercial floor space that can be built is approximately 200 million square feet.

如果按照现在中环30~35港币每平方尺的租金，相当于每个月租金便是7000万，一年租金7~8亿港币。

This doesn't even take into account future rent increases, so Bobby and Newbikini felt that investing just over 100 billion in this project was well worth it. (End of Chapter)