A century-old wealthy family that rose from Shanghai

Time flies, and another year has passed in the blink of an eye.

It was the beginning of August 2007.

"Father"

Chen Zerui respectfully entered the chairman's office.

This office is basically only used by him now, since his father is not in the company most of the time and does not directly participate in company affairs, only coming in occasionally.

Chen Wenjie slowly raised his head and said, "In the next 12 to 15 months, we need to cash out about 20 to 25% of Husky's equity, that's one thing; in the next 12 months, we need to deal with some non-core small and medium-sized properties and accelerate the sale of residential units as soon as possible, that's another thing. In short, the subprime mortgage crisis has already occurred in the United States, so your grandfather predicted that a global financial crisis may break out in a year, and we need to prepare in advance."

Chen Zerui was shocked; at least, he had no such judgment whatsoever.

"Father, why is it global? You know, many economists are predicting that the global economy will reach 5% growth again this year."

Chen Wenjie laughed and said, "Your grandfather had a saying: 'Sell when the crowds are bustling, buy when no one is interested.' Since 2003, there has been a global war over oil and resources, and including this year, it has been a full five years. On the other hand, the subprime mortgages in the United States have indeed become enormous. Even if the US government tries to cover it up, it will eventually be exposed. Moreover, your grandfather has never made a wrong judgment, so a year from now will definitely bring an economic depression like that of the 1930s."

Chen Zerui quickly replied, "I understand. I will make strategic plans immediately."

Chen Wenjie nodded. He didn't need to say much; he trusted that Chen Zerui knew what to do.

However, he added one thing: "By the way, shortly after this downturn, CK Asset Holdings will be selling some prime properties to family offices for long-term rental income. This is also a way to streamline the group, but it only includes the two buildings in Central and Singapore."

Upon hearing this, Chen Zerui said, "These are all high-quality properties that are not in the core areas."

For the Cheung Kong Group, the 'Exchange Square', 'Cheung Kong Centre', and 'Shangri-La Hotel Tower' in Hong Kong are the core assets.

Around 09-10, Cheung Kong Holdings was able to sell some entire buildings in Central to its own family offices in order to generate long-term rental income.

"This is also part of the slimming plan. After all, the numbers on the rich list don't benefit us."

Yes, Father.

In March of this year, companies such as Cheung Kong, Hutchison Whampoa, and HK Electric distributed high dividends, naturally with the aim of reducing cash reserves.

There's no way around it, I made just too much money last year.

Even in 08-09, Cheung Kong Holdings will maintain a high dividend payout strategy.

After learning that a global financial crisis might occur in a year, Chen Zerui had a lot to arrange and quickly became very busy.

Global Group.

Chen Wenming also called his four sons to his office, and then he said, "Zewen, for the next year, you need to reduce the number of ships and do as much as possible."

Chen Zewen felt somewhat uncomfortable upon hearing this, after all, under his leadership, Global Shipping acquired Norway's Bengersen (a shipping company mainly engaged in natural gas transportation) in 2001, becoming the largest shipping company with a capacity of 2200 million tons, surpassing Maersk at the time, and also surpassing his grandfather's Global Shipping, becoming the world's undisputed "oil and gas transportation giant".

This move earned Chen Zewen a very positive reputation; he was only thirty-six years old at the time.

Moreover, Worldwide Shipping did not stop there. In 2005, it defeated Maersk to acquire P&O Negara, a long-established British shipping company, which strengthened Worldwide Shipping's container shipping capabilities.

Today, Worldwide Shipping is arguably the world's No.1 – the largest oil transporter, the largest natural gas transporter, and the third-largest container transporter.

"Father, the world economy is growing at a rate of 5% annually, which means the market is very good. Our Global Shipping has only just secured its position through a series of acquisitions, and now we are drastically reducing our fleet."

"What do you know! That economic bubble burst wasn't the best economic development we've ever experienced. Your grandfather recently analyzed that the US subprime mortgage crisis has created a huge bubble, and once it bursts, it will affect the global economy. This crisis is probably no less severe than the one in the 1930s. Compared to your grandfather, our vision is no different from that of a child."

Upon hearing this, Chen Zesong, Chen Zeqi, Chen Zewen, and Chen Zechi were shocked and offered no further rebuttal. They could argue with their father, but arguing with their grandfather was tantamount to suicide.

"Okay, I will come up with a concrete plan as soon as possible, and measures such as reducing ships and increasing efficiency should be implemented as soon as possible."

Chen Wenming nodded and said, "Our previous major acquisitions were about acquiring transportation networks, market relationships, and transportation brands. This reduction in ships is just a strategic adjustment and does not conflict with the previous acquisitions. It's simply a matter of buying at the bottom a few years later."

"I see"

Chen Zesong, who is in charge of Wharf Holdings, then said, "Wharf Holdings also needs to make some preparations, such as selling some non-core properties to increase cash flow reserves in preparation for the next round of bottom-fishing."

Chen Wenming nodded and said, "Although there's not much to sell in Hong Kong and the mainland, we shouldn't acquire any land or projects in the mainland over the next year. In addition, we should mainly sell some non-core properties or assets in Singapore, Japan, North America, and Europe."

Yes, Father.

Although Chen Zeqi was listening, he didn't make any arrangements. His company, PCCW, hadn't been doing very well in recent years, mainly due to the drag from its acquisition of Hong Kong Telecom.

However, it's not without its highlights. For example, Tencent's market capitalization has exceeded HK$600 billion, and his holdings are worth as much as HK$200 billion. Of course, even if a global financial crisis occurs, he doesn't plan to reduce his holdings, because his grandfather told him to hold them long-term.

Finally, Chen Zechi, who is in charge of aviation and aircraft leasing business, decisively stated: "The global financial crisis will definitely have a significant impact on aviation. I plan to look for opportunities to sell most of the passenger aircraft in the aircraft leasing business."

Aircraft leasing involves purchasing passenger planes and then leasing them to airlines in various countries. Universal Group, which owns approximately $50 billion worth of passenger aircraft, is one of the world's largest leasing companies.

Chen Wenming nodded and said, "Yes, there is plenty of time. You have time to prepare. Remember, your grandfather attaches great importance to this. Don't take this opportunity for granted."

"Yes, Father."

Chen Guangliang's other children also received his guidance and made arrangements for their 'evacuation'.

Chen Wenkai's 'Changgong Group' doesn't require much attention, as it's a large, diversified conglomerate that maintains its four-group corporate structure. If these four groups were further categorized, they could actually be divided into: technology, industry, and culture.

The technology industry naturally includes companies like Midea Electronics; the industrial sector is diverse, including textiles, clothing, toys, machinery manufacturing, hardware, and yachts; and the cultural industry includes comics and games.

Although the industrial operations of Changgong Group have been transferred to the mainland and other countries or regions, it still has many advantages in technology, management, supply chain and sales network thanks to its many years of hard work.
Changgong Group's technology industry has performed exceptionally well in recent years. Midea Electronics has a wide range of products, including mobile phones, MP3 players, MP4 players, PHS phones, DVDs/VCD players, game consoles, telephones, televisions, and electronic watches. At the same time, Midea has invested in the semiconductor, lithium battery, and LCD display industry chains in mainland China.

The cultural industry of Cheung Kong Group is a veritable 'IP warehouse,' boasting a wealth of valuable comic book IPs and world-class game IPs that generate enormous revenue annually. Especially in the late 1990s, Hong Kong's online gaming industry surpassed Japan and South Korea, experiencing a boom in the year 2000, with numerous games exported overseas and to mainland China.

In summary, these three industries are: manufacturing, technology, and culture. Manufacturing is a traditional industry; technology is a promising industry; and culture is a "easy money" industry.

Two months later, the Chen family also began to withdraw funds from the stock market.

Of course, given the Chen family's extensive investments in the global stock market, Chen Guangliang's advice was to "pull back 40% to 50%" rather than to liquidate all holdings.

On this day, Chen Wensheng, chairman of the board of directors of Ping An Financial Group, gathered his three sons and one daughter to make arrangements. Chen Wensheng was born in 1942 and is now 65 years old. He followed the example of his elder brother Chen Wenjie and packaged his assets into a trust, with his three sons and one daughter as beneficiaries, while their businesses were managed separately.

Ping An Financial Group comprises three major businesses: Ping An Bank (Hang Seng Bank, Ping An Securities, Ping An Insurance), Ping An Investment Bank (primarily in the Asian market), and Bahrain Investment Bank (primarily in the European and American markets).

In addition, there's a 'father-son trust fund' with the daughter, making a total of four assets available for the four children to join, but without dividing the family property. Of course, only the eldest son became the CEO of Ping An Investment Bank, and the daughter became the general manager of the trust fund; the rest, Ping An Bank and Barings Bank, operate under a professional management model.

"Whether it's Ping An Investment Bank, Barings Bank, or the Father and Son Trust, they all need to reduce their securities holdings by 40-50% within 10 months, effective immediately."

Upon hearing this, the three sons and one daughter were somewhat surprised. Having experienced the Asian financial crisis of 97-98, they knew that this ratio was an indication that a 'storm was about to break'.

The eldest son, Chen Zeqian, asked, "Dad, is this Grandpa's idea?"

Chen Wensheng nodded with satisfaction, not feeling ashamed in front of his children at all. After all, the elderly father in the family is the spiritual pillar of the family members.

"Okay, we'll organize it right away."

The youngest son, Chen Zehan, then asked, "Dad, the need for a global capital withdrawal must indicate a global financial crisis. Although Ping An Bank is a commercial bank, it also holds some real estate investment trusts and securities investments, so it should act accordingly, right?"

Chen Zehan, 31, has been a director of Ping An Bank for a year. Although Ping An Bank operates on a 'professional manager' model, Chen's say is naturally absolute.

Chen Wensheng said, "Well, you can take the lead on Ping An Bank, and I will support you. You must remember that a global economic crisis like the one in 1930 may break out in a year, and then you will know what to do. Of course, especially in the Hong Kong stock market, we need to consider that the volatility caused by cashing out cannot be too great, so we must consider all aspects."

Chen Zeqian quickly replied, "I understand what Father means."

In 1998, the Chan family participated in the market rescue efforts, working with the Hong Kong government to defeat international speculators. Therefore, it's unlikely that the Chan family would disregard the Hong Kong stock market and launch a full-scale crackdown.

At that time, the total market capitalization of the Hong Kong stock market was approximately HK$26 trillion. Ping An Investment Bank held securities worth approximately HK$1500 billion, Barings Bank held approximately HK$500 billion, Ping An Bank held approximately HK$200 billion, and the father-son trust held HK$200 billion.

This means that Chen Wensheng's faction holds 2400 billion in securities, accounting for about 0.9% of the Hong Kong stock market.

Children such as Chen Wenjie, Chen Wenming, and Chen Wenkai were strictly forbidden by Chen Guangliang from entering the stock market.

Of course, mistresses like Guan Jiahui, Li Jiaxin, Li Zhi, and Zhang Min still hold securities worth 400 to 500 billion.

Jia Hui Group.

"Sister, you're already 45 years old, but your skin and age look like you're in your early thirties. Do you think it's thanks to Mr. Chen or money?" Li Jiaxin leaned against Guan Jiahui's desk, her long, beautiful legs crossed, her eyes full of curiosity.

Guan Jiahui gave Li Jiaxin a charming look and said, "Just keep it to yourself, don't gossip about it outside."

"As expected of my older sister, she always puts the bigger picture first in this matter!"

Li Jiaxin leaned down and deliberately lifted Guan Jiahui's chin.

Guan Jiahui slapped her hand away and said, "Be serious, today's meeting is very important!"

If any other man saw this scene, his eyes would surely explode and his heart would pound wildly. After Chen Guangliang's transformation, Guan Jiahui and Li Jiaxin were much more beautiful than in their previous lives. The changes in their figures alone were more perfect, not to mention the changes in their temperament.

Later, Kwan Ka-wai said, "Kai Fai Group currently has a market value of just over 40 billion and assets of over 50 billion, which is nearly ten times that of 1996."

Li Jiaxin gasped, thinking that if it weren't for her man's behind-the-scenes efforts, how could Jia Hui Group have developed so rapidly?

In 1998-1999 alone, Jia Hui Group spent billions of yuan to buy over a dozen properties and a large number of high-quality properties, and continued its expansion thereafter. Of course, this was also due to strong support from banks, but it was also something Mr. Chen had said he would do.

"If you clear out 70-80% of your stocks in eight months, can you cash out 100 billion yuan in cash flow?" Li Jiaxin asked curiously.

Although she wanted to be the chairman of the board of directors of Jia Hui Group, she would not check the accounts or care about the trivial matters of Jia Hui Group; she just wanted the honor.

Guan Jiahui said with a smile, "We currently hold securities worth as much as 150 billion, and I think cashing out 100 billion is not a problem. Of course, we have also made a lot of money from the securities we hold personally."

Li Jiaxin said happily, "It's more than just a lot of money. Back then, they told us to buy Huaxia Ping An Insurance. At that time, its market value was less than 700 billion yuan. Now its market value is 6000 billion yuan, which is nearly ten times. And Huaxia Life Insurance and Bank of Communications, which one of them has more than tripled, or even seven or eight times?"

Red-chip stocks were a major focus after the turn of the millennium, and they made the Chen family a lot of money.

"Knock knock. Miss Guan, Miss Li, Mr. Zhang is here!"

"Let him in."

A short while later, Zhang Huazhong, the general manager of Jia Hui Group, walked in and greeted him respectfully.

Li Jiaxin stood to one side of Guan Jiahui's desk, making no attempt to hide her close relationship with Guan Jiahui, which inevitably led to speculation among people inside the company.

Of course, those who came into contact with Li Jiaxin were all senior executives of Jia Hui Group, and they naturally dared not gossip.

“Pete, you need to draft a plan immediately. Over the next eight months, we need to cash out 70-80% of our securities investments. Remember to cash out evenly and continuously, avoiding concentrated cash-outs. In addition, Jia Hui Group needs to sell some non-core property investments. These are the core properties I have planned, and they are not under consideration.”

Upon hearing this, Zhang Huazhong was surprised; this was a "big move."

He respectfully accepted the documents handed to him by his female assistant. There were quite a few core properties, including THE ONE in Tsim Sha Tsui, the Entertainment Building in Central (purchased from Hysan Properties in 2005), SOGO Department Store in Causeway Bay, and a total of 32 properties.

Even so, there are over a hundred properties available for sale!
"Miss Guan, is there a new plan?"

Kwan Ka-wai said directly, "Just consider this as us planning to lower our profile and keep a low profile. There are no new plans for the time being, but having cash flow is always a good thing."

"Ok"

Zhang Huazhong already had some guesses, but he didn't need to waste any more words, after all, these two were the absolute majority shareholders with 75% of the shares.

After taking Zhang Huazhong away, Guan Jiahui whispered, "Now I finally understand why Mr. Chen always made me change the general manager regularly. It turns out he was worried that it would shock others too much."

"Sister, what should I say?"

Guan Jiahui mimicked her husband by patting Li Jiaxin's buttocks and said, "Think about it, if the same general manager had cashed out in 96 and then again in 07-08, he would be surprised if he found out about the big crash next year. Only a god could probably pull off such a feat, right?"

Li Jiaxin nodded quickly, then flattered him profusely, saying, "He is our god."

Guan Jiahui smiled and said, "Then let's go find him." (End of this chapter)