Chapter 617
The 3rd Generation's 'Rebellion'
On October 7, Governor Pang delivered his policy address, causing turmoil in various sectors of Hong Kong and planting a major seed for future problems.
Chen Wenjie sat in his office on the 70th floor of the Cheung Kong Center, looking at the news in the newspaper, his brow slightly furrowed. Compared to others, he was more cautious, believing that Britain was not truly acting in Hong Kong's best interests.
It's a very simple principle: in the past few decades, when have Chinese people ever had real political rights? Now that it's almost 1997, the British are naturally becoming more generous.
He recalled his father's words: "If Hong Kong only has real estate, finance, and trade, it will be doomed. But if we add technology, industry, and culture to Hong Kong, then Hong Kong will at least have hope for the future."
Father, did you foresee something?
unknown.
However, Chen Wenjie soon found himself troubled as Ma Shimin came to his office and reiterated his position:
“Mr. Chen, I agree with Cheung Kong Holdings’ major expansion into the mainland, after all, Cheung Kong Holdings’ business is real estate, hotels, beverages and food. But Hutchison Whampoa should concentrate its strength on overseas development, rather than also making a big push into the mainland.”
Chen Wenjie immediately said, "Hutchison Whampoa has not achieved much in its overseas development over the years. I firmly believe that a large emerging market has greater investment potential. Of course, overseas development remains an important initiative for Hutchison Whampoa. Simon, facts have proven one thing: whether it's Jardine Matheson or HSBC, the Far East market remains their most important market."
Ma Shimin countered, "But HSBC has already completed the acquisition of Midland Bank in the UK. The HSBC Group has total assets of HK$21000 trillion and 3300 branches in 68 countries around the world, ranking among the top 10 banks in the world."
Chen Wenjie laughed and said, "Time will prove that HSBC's most profitable place will definitely be the Far East."
Neither side could convince the other, and soon Ma Shimin could only say seriously, "In that case, I choose to resign. I cannot be disloyal to the boss, because that would not be good for anyone!"
Chen Wenjie advised, "Perhaps we can balance both."
Of course, this was just a reassuring remark.
Ma Shimin wanted to focus on developing overseas businesses, but Chen Wenjie demanded that investments in both mainland China and overseas be taken into account.
Hutchison Whampoa itself is not Cheung Kong Holdings and has a large amount of cash flow. In addition, its overseas investments are subject to restrictions imposed by Chen Wenjie.
"It's very difficult"
Chen Wenjie sighed and could only say, "If you insist, then I will not try to stop you. Of course, I hope you can continue to be an advisor to Cheung Kong Holdings."
"no problem!"
Regarding salary and benefits, Ma Shimin believes that the Chen family has treated him well, and he also greatly admires Chen Wenjie, considering him a stable and promising boss.
"About the successor?" Chen Wenjie asked Ma Shimin.
Ma Shimin said, "If you want to cultivate your children, then Chen Zerui is undoubtedly a suitable candidate. Of course, the most suitable candidate is Huo Jianning."
Chen Wenjie smiled and said, "For Hutchison Whampoa, the successor is secondary; the most important thing is a suitable CEO!"
As for his eldest son, Chen Zerui, he does indeed prefer to serve as a director of Cheung Kong Holdings, ending his experience at Hutchison Whampoa.
After all, if 34-year-old Chen Zerui is promoted to general manager of Hutchison Whampoa, then the only option left is to appoint Huo Jianning as an executive director of Cheung Kong Holdings, which may not be enough to retain him.
"Chen Zerui is still young, he will be a qualified successor!"
This is a heartfelt statement.
Speaking of which, Chen Zerui can be considered Ma Shimin's 'disciple'. This time, when his master left, he did not recommend his disciple for a position, but instead recommended Huo Jianning, who had been 'monitoring' him.
It's important to know that Ma Shimin's handling of Husky was not successful. If it weren't for Chen's intervention, Husky's financial problems would have become much bigger. Huo Jianning, on the other hand, has always had differing opinions on the Husky issue.
After Ma Shimin left, Chen Wenjie fell into deep thought.
The Cheung Kong Group is a large corporation, and with three sons and one daughter, the issue of succession is undoubtedly a difficult one.
Perhaps his three sons and one daughter are doing well now, but whether they can unite and jointly govern the Cheung Kong Group in the future is the biggest question.
"dad"
As her daughter, Chen Siqi, walked into the office, she was dressed like a powerful businesswoman, exuding competence and wisdom.
Chen Wenjie smiled and said, "Sit."
After saying that, he got up and sat down on the sofa with his daughter.
He and his father (Chen Guangliang) packaged 50% of Cheung Kong Holdings' shares into a father-son trust, and his three sons and one daughter became the heirs.
This trust cannot be split. Even though her daughter, Chen Siqi, and her three brothers are all heirs with equal rights, she cannot take it with her; she can only enjoy the annual dividends. Chen Siqi is already married and has children, but her offspring do not have the right to inherit or receive dividends.
In this way, on the surface, his four children are treated equally. In reality, the descendants of his three sons are still in the position of heirs. In short, those who are not surnamed Chen cannot obtain the status of heirs, and the right of inheritance cannot be taken with them.
"Siqi, you have been deeply loved by your grandfather since you were a child, not just because you are his granddaughter, but more importantly because you are intelligent and responsible!"
Chen Siqi said with a smile, "Brothers and sisters, aren't you all smart and responsible? I just happened to be in a good position!"
She grew up at No. 79 Deep Water Bay and naturally had a lot of contact with her grandparents.
Chen Wenjie smiled and continued, "No matter what, your grandfather has always hoped that you could transition into a CEO and become a management talent, because a CEO with a lawyer background has a great advantage."
Chen Siqi wasn't surprised (that he was trying to steal her brother Chen Zerui's identity), but calmly asked, "Dad, which subsidiary or sub-subsidiary needs me?"
Cheung Kong Holdings has several subsidiaries, but Hutchison Whampoa is unlikely, as it is the most important subsidiary.
Changjian Group? Changshi Group?
Chen Wenjie shook his head and said, "It's a trust fund between me and you four siblings, and it needs a CEO. In your and my plans, Cheung Kong Holdings will continue to pay high dividends, and these funds need to be reinvested. Moreover, as this asset grows larger and larger, we need a CEO who is both decisive and trustworthy."
Last year, Cheung Kong distributed HK$82 billion in dividends, with 50% going into this foundation, equivalent to HK$41 billion. Such a massive dividend is roughly equivalent to the annual net profit of top real estate companies like Sun Hung Kai Properties and Henderson Land Development.
Although Chen Guangliang should have received dividends from this trust, he no longer holds any rights, so there's no point in him receiving any. Therefore, it essentially becomes a joint fund for Chen Wenjie and his four children, with Chen Siqi also enjoying a quarter of the inheritance rights and a fifth of the dividend rights.
The children of the Chen family enjoy a lot of dividends, after all, there's also the 'family office' bonus.
Upon hearing this, Chen Siqi did not immediately agree, which made Chen Wenjie somewhat nervous, knowing that if his daughter was unwilling, he had no right to force her.
If her daughter were to manage the trust, it would be tantamount to her withdrawing from the race to become CEO of the Cheung Kong Group.
Of course, as long as Chen Zerui doesn't make any major mistakes, he will basically inherit the position as the eldest grandson.
"I promise, as long as my brothers trust me!"
Chen Wenjie was delighted and said with a smile, "They definitely trust you."
Chen Siqi responded with a smile, "I know. As long as Grandpa is alive, our family's general direction will not go wrong, so I have no pressure. Of course, regarding the management of this trust, I will optimize the organizational structure and make investments more stable and comprehensive."
“Okay. I will keep in touch with you regarding the overall investment plan, while you and the professional investment staff will handle the details. Also, you should come up with a plan for the trust's regular dividends as soon as possible, as the funds will be used for the long term. By the way, your child will also have the right to dividends; this is my decision as the father.”
Chen Siqi said gratefully, "Thank you, Dad." This decision had nothing to do with the family; it was Chen Wenjie's own decision.
at the same time.
Chen Wenming, the second son of the first wife, also encountered the issue of inheritance for his children. Although he married late (27), he had four sons in one go.
He also wanted to follow his elder brother Chen Wenjie's example and treat the Global Group's business as a whole, with his four sons managing this huge group together in the future.
However, things changed when his second son, Chen Zeqi, found him.
"Dad, I want to start my own business!"
A simple sentence, yet brimming with determination.
Chen Wenming seemed to see his younger self, who had also once been at odds with his father in matters of marriage.
Nowadays, the second generation rarely puts immense pressure on the third generation regarding romantic relationships and marriage. Instead, they place greater emphasis on family succession.
How much capital do you have?
Chen Zeqi said, "I have 4 million Hong Kong dollars."
Chen Wenming was taken aback and said, "Where did you get 4 million?"
The third-generation members of the Chen family primarily earn income from salaries, living expenses from the family office, and living expenses from the father-son trust. Over time, this amounts to at most tens of millions or hundreds of millions.
Chen Zeqi is only 25 years old this year (born in 1967), so it would be quite good if he could earn 10 or 20 million.
“When you first got me involved in the oil trade, I borrowed tens of millions from my brothers and then traded crude oil futures. I made 2 million, and then I quickly invested it in the Hong Kong stock market.”
Chen Wenming was somewhat surprised, then pretended to be angry and said, "If your grandfather knew, he would definitely give you a zero."
Chen Zeqi immediately retorted, "I only got involved in crude oil futures because I trusted Grandpa's judgment; it was taking advantage of the situation. As for securities investment, I didn't use leverage, and the stocks I bought were all high-quality stocks."
Chen Wenming had nothing to say. His son seemed to be taking a risk, but in reality, he was just taking advantage of the family's influence.
"Pay back your brothers' money, and I'll give you another HK$2 million. You can start your own business, but if you go bankrupt, you'll have to go back to the group, and you need to understand the consequences."
"I see"
If the company goes bankrupt, even if he returns to the group, he will still be at a disadvantage compared to his older and younger brothers.
"go"
Thank you, Dad.
After Chen Zeqi left, Chen Wenming had a headache. His attempt to learn his elder brother's way of passing on his skills seemed to be becoming impractical.
Her second son, Chen Zeqi, had never been on her side since childhood. He had been forced into marriage, and his relationship with his wife was merely a matter of "family duty." On this point, her son sided with his mother, had many complaints about her, and even showed some rebellious behavior. For example, he wouldn't touch the living expenses given to him during his university years, preferring to work instead until the family's living expenses were distributed to him.
After graduating from university, he finally managed to get his son a job at the group, but in the past three years, he has been looking for opportunities to become independent.
Of course, he was also a little happy, thinking that this son resembled him, but he would never have had the courage to say no to his father back then.
Since his son wants to be independent, he, as the father, will naturally support him.
The Global Group's business is not truly integrated today – shipping, aviation, real estate, and trade are not a unified whole.
In the future, will he split his business into four parts and pass them on to his four sons?
Such a big matter made him unsure of what to do, and he still needed to consult his father.
When the four sons of the eldest son's wife confided in Chen Guangliang about the issue of 'succession', Chen Guangliang discovered that his four sons were already middle-aged or elderly, with the eldest son, Chen Wenjie, being 59 years old.
Time really flies!
Of course, Chen Guangliang never had the idea of 'returning to his youth,' not even if he were a hundred years old. Because in his youth, he had already enjoyed the best of life, but unfortunately, there was no better life available in that era.
Therefore, let alone exchanging 99% of his wealth for his youth, even if he were to exchange only 1% of his wealth for his youth, Chen Guangliang would not want to go back to the way things were before.
He didn't suffer too much after transmigrating, so his life was very worthwhile.
"You decide for yourselves. After all, it's your business, and your children's business!" Chen Guangliang finally gave his opinion on his sons' question about succession.
The Chen family is already so large that Chen Guangliang believes that even if a spendthrift son were to emerge, he would not be able to ruin it; moreover, education has always been a very important issue for the Chen family.
Chen Wenming said with a troubled expression, "Yes."
Chen Guangliang knew what he was thinking and said, "It's good if they cause some trouble. Besides, how much trouble can they possibly cause?"
"Okay, Dad."
As long as the 'group' he founded maintains a 'stable and developing' state, how much can his successors who go out to start their own businesses lose?
After all, the Chen family was already a hidden billionaire family with assets worth hundreds of billions of US dollars.
Chen Wenjie then discussed the reasons for Ma Shimin's departure.
Chen Guangliang said with a smile, "The mainland market is a market with great potential for future development. How could they possibly understand that? It's good that he left. He's been the CEO of Hutchison Whampoa for almost ten years. It would be better to replace him with the younger Fok Kin-ning."
Yes, Father.
Chen Guangliang added:
"Of course, we cannot relax our efforts in overseas investment. Regarding Husky Energy, we can consider gradually investing in US natural gas, which is expected to see some price increases by the end of the 1990s. By the new millennium, oil and natural gas will surely bring us a double harvest."
"Regarding container terminals, some terminals in Panama are about to expire, and you could consider inspecting some of them; there are also those in Europe and the Americas. As for container terminals in Asia, investment will naturally focus on the Far East region."
"In telecommunications, cellular technology is far superior to CT2 (second-generation mobile communication technology), hence Orange in the UK, Hong Kong, and Australia."
"In the retail sector, in addition to seeking opportunities in mainland China, it is also necessary to enter Europe. Expanding the retail sector is also a very important strategy."
Chen Wenjie listened attentively. If it weren't for his father, they would have almost chosen CT2 communication technology instead of cellular communication technology, thus avoiding a significant financial loss. More importantly, they had rapidly seized market share in the UK, Hong Kong, and Australia thanks to this mobile communication technology. (End of Chapter)