The Dragon and the Crown : Hong Kong Memoirs

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The Dragon and the Crown : Hong Kong Memoirs am Royal Asiatic Society Hong Kong Studies Series h Nicole Kwa While Hong Kong's spectacular economic growth and political development have been well documented, the social and cultural lives of the ordinary people swept up in the changes have not found a significant voice. Through the personal experiences of Stanley Kwan and those around him, this book gives such a voice to people whose lives have been profoundly affected by the dramatic changes, as Hong Kong transitioned from an entrepot to an international financial centre and from a colony to become a part of China. Wedged between the East and the West — the Dragon and the Crown — Stanley Kwan's life experiences reflect the forces pulling at Hong Kong. He was born into a traditional Chinese banking family but attended King's College under the British colonial system. Fired up by patriotism during the war, he joined the Nationalist Chinese army and served as an interpreter for American forces in southwest China. In 1 949, two of his brothers went to the Mainland to join the socialist revolution. Although tempted to join, he stayed in Hong Kong, worked for a British firm and became a "China watcher" at the American Consulate General. He finally joined a local Chinese bank — Hang Seng Bank where, as head of the Research Department, he launched the Hang Seng Index and witnessed the dramatic cycles of the Hong Kong economy. With the prospect of 1997, Stanley Kwan deliberated on his future and decided to retire to Canada in 1 984, joining the tide of immigrants from Hong Kong. The book contributes to the ongoing search for Hong Kong identity in the Special Administrative Region and will resonate among people in Hong Kong as well as those interested in the fate of the former colony. Digitized by the Internet Archive in 2010 with funding from Multicultural Canada; University of Toronto Libraries http://www.archive.org/details/dragoncrownhongkOOkwan The Dragon and the Crown Royal Asiatic Society Hong Kong Studies Series Royal Asiatic Society Hong Kong Studies Series is designed to make widely available important contributions on the local history, culture and society of Hong Kong and the surrounding region. Generous support from the Sir Lindsay and Lady May Ride Memorial Fund makes it possible to publish a series of high-quality works that will be of lasting appeal and value to all, both scholars and informed general readers, who share a deeper interest in and enthusiasm for the area. Other titles in RAS Hong Kong Studies Series: Reluctant Heroes: Rickshaw Pullers in Hong Kong and Canton 1874-1954 Fung Chi Ming For Gods, Ghosts and Ancestors: The Chinese Tradition of Paper Offerings Janet Lee Scott Hong Kong Internment 1942-1945: Life in the Japanese Civilian Camp at Stanley Geoffrey Charles Emerson The Six-Day War of 1899: Hong Kong in the Age of Imperialism Patrick H. Hase Watching Over Hong Kong: Private Polii ing 1841-1941 Sheilah E. Hamilton The Dragon and the Crown Hong Kong Memoirs Stanley S.K. Kwan with Nicole Kwan # m *. ^ i±s m, jpt Hong Kong University Press Hong Kong University Press 14/F HingWai Centre 7 Tin Wan Praya Road Aberdeen Hong Kong © Hong Kong University Press 2009 ISBN 978-962-209-955-5 All rights reserved. No portion of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage or retrieval system, without permission in writing from the publisher. Secure On-line Ordering http://www.hkupress.org British Library Cataloguing-m-Publication Data A catalogue record for this book is available from the British Library. Printed and bound by Kings Time Printing Press Ltd., in Hong Kong, China Contents Foreword by Robert Nield vii Foreword by Diana Lary and Bernard Luk ix Preface xi Acknowledgements xiii Editorial Conventions xv Genealogical Tables xvi 1 Roots 1 2 Baptism by Fire 29 3 Hong Kong after the War 65 4 Hang Seng Bank 101 5 New China 133 6 Home and Country 169 Appendix I: The Chinese Gold and Silver Exchange Society 189 Appendix II: The Hang Seng Index 191 Appendix III: The Teachings of Chairman Ho 193 Appendix IV: Quotations, Sayings and Slogans in Chinese 195 Glossary 199 Sources 205 Index 211 Foreword It is very gratifying to see that the Royal Asiatic Society Hong Kong Studies Series has indeed become a Series since our first volume appeared in 2005. The publication of Stanley Kwan's memoirs brings our total to six — and there are significantly more than that in various stages of consideration and production. Originally writing for his family, friends and relatives, Mr. Kwan was happily persuaded to consider reaching a wider audience. A Chinese version was produced in 1999 in Canada, and I am delighted to present here a re-written and fuller version in English, produced with the collaboration and assistance of his niece Nicole Kwan. Mr. Kwan's background and experience have given him recollections and observations that are unique and fascinating to anybody interested in Hong Kong's social and economic transformation over the past seventy years. The journey he records, from patriotism to socialism and to capitalism, includes his one-time belief in socialism and Mao Zedong thought, and his establishment of the ultimate capitalist measure of Hong Kong — the Hang Seng Index. The publications in the Studies Series have been made possible initially by the very generous donation of seeding capital by the Trustees of the Clague Trust Fund, representing the estate of the late Sir Douglas Clague. This donation enabled us to establish a trust fund in the name of Sir Lindsay and Lady Ride, in memory of our first Vice President. The Society itself added to this fund, as have a number of further generous donors. The result is that we now have funding to bring to students of Hong Kong's history, culture and society a number of books that might otherwise not have seen the light of day. Furthermore, we were delighted to be able to establish an agreement with Hong Kong University Press which sets out the basis on which the Press will partner our efforts. Robert Nield President Royal Asiatic Society, Hong Kong Branch July 2008 Foreword Some of the most influential and important people in our world are the quiet, thoughtful ones who see the need for a change or an innovation and set about bringing it into being. One of these people is Stanley Kwan, the creator of the Hang Seng Index, one of the key tools of financial information in Hong Kong, not just for Hong Kong, but also for the world. Hong Kong has evolved since the end of World War II from a colonial port on the China coast into a major centre of the global economy. Social and cultural development has gone hand in hand with the economic, but has been much less well documented in the scholarly literature or the popular press. Many men and women contributed to the making of Hong Kong society. Some were rich and famous, or did great deeds that were recorded in print or on stone. Most just struggled quietly to survive in difficult conditions. The life stories of these men and women give us a deeper, fuller understanding of the evolution of Hong Kong. Stanley Kwan belongs to both these categories. He has given the world some of the most widely recognized and frequently cited indicators of the Hong Kong economy; yet with the self-effacing modesty characteristic of the scholar- merchant {rushang) that he is, he has led a quiet and simple life. His world, part and parcel of the evolving open and pluralistic Hong Kong, and so beautifully described in this book, is one in which his involvement with banking goes hand in hand with a profound dedication to Chinese culture and history. This book is therefore not only a "peoples history" of Hong Kong, but also a probing analysis of Hong Kong identity, and what it means to be living in a Chinese society. As the return to Chinese sovereignty drew near, Stanley Kwan went through a process of analysis and questioning about the past and the future, a process that eventually led him to emigrate to Canada. His description of his decision- making is deeply moving; he articulates, with care and sincerity, the process that has so enriched Canada, and connected this country so closely to Hong Kong. The Dragon and the Crown Scholars as well as general readers who have an interest in Hong Kong and modern China owe Stanley Kwan a great debt for sharing his touching and thoughtful story, first in the Chinese version which we edited as Volume 2 of the Hong Kong Life Stories series published in 1999 by the University of Toronto-York University Joint Centre for Asia Pacific Studies, and now in this enriched and re- written English version. Reading his memoirs is an enlightening and enjoyable treat. Diana Lary Bernard Luk Vancouver Toronto Preface As a third-generation Hongkonger, my life and family fortune have been inexorably tied to the fate of the former British colony during the past century We were wedged between the East and the West — the Dragon and the Crown. 1 was born, in 1925, into a banking family steeped in Chinese culture and tradition, but 1 studied at King's College under the British colonial system. I served as an army interpreter during the war, liaising between the Nationalist Chinese and American forces in southwest China. After the war, I worked for a British firm, then the American Consulate General and finally, back to my roots, a local Chinese bank — Hang Seng Bank — where, as head of the research department, I launched the Hang Seng Index and witnessed the dramatic ups and downs of the Hong Kong economy.
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