Such a conservative strategy inevitably means that in good times it is difficult to remain competitive when rivals use borrowings to bid prices higher and magnify their returns on equity. But the octogenarian of the old school of investments says his cautious approach to debt explains why Hip Shing Hong has weathered the bad times and will celebrate its 60th anniversary this year.
'Over the past 60 years the Hong Kong property market has suffered one blow after another dating back to events such as the banking collapses of 1965 and the crisis of confidence due to political uncertainty in 1984,' Mr Fong said.
'During this time I witnessed a number of Hong Kong Chinese-owned developers emerging, some of which now dominate the city's real estate industry. But at the same time more than a thousand property firms have been forced out of the market after failing to weather the crises.
'So many of my fellow developers have been driven out of the market because they were over-leveraged and that makes me cautious about debt. I ask myself how could I provide for my family's future and myself if my company was forced out of the industry and that is why I prefer to take a conservative strategy.'
The policy was also partly prompted by a painful lesson learned in 1965.
'At the time, my partner ran away, leaving me with all his debt. As we had signed personal guarantees, the creditor banks came to me after he had gone. It was a difficult time for me and a painful and unforgettable experience.'
Hip Shing Hong was established in 1948 and originally operated a business trading in spices, with Mr Fong choosing to follow in the footsteps of his father, Fong Shu-chuen. But later as Hong Kong's economy took off and the need for homes increased, the company diversified into property.
Now it has a portfolio of 1.5 million square feet gross floor area of investment properties ranging from office, retail shops, upmarket residential space and car parks.
'My father exported spices but stopped during the Sino-Japanese war. And I needed to find a job. Between 1946 and 1947, I worked for a company called Dao On Hong on a wage of HK$100 per month. And then one day, my father said to me: 'You are married now and it is time for you to run your own business'.
'He gave me HK$20,000 and I used it to set up this company. At the time, I was 23 years old.'
Mr Fong quickly took advantage of the growing economy to buy warehouses and residential properties in the 1950s. As business expanded the firm listed in 1972 to raise fresh capital, but in 1989 Mr Fong privatised the company. 'We wanted to spend more money on charity. But as a listed company we needed shareholders' approval,' he said.
Through the Fong Shu Fook Tong Foundation and the Fong Family Foundation, Mr Fong now annually sets aside 10 per cent of his business profits to support education, social welfare, and charity work both in Hong Kong and on the mainland.
So far, he has donated more than HK$300 million. 'Giving and helping the needy will make you feel good. Hip Shing Hong may be conservative and we may lag behind others, but we are happy.'
Looking ahead, he said the company had no plan to list again and would maintain its conservative strategy. But conservative does not mean passive. The firm made a number of investments when market sentiment - and prices - was low, such as during the Sars outbreak in 2003.
'In 2003, I bought a building in Central for our new headquarters for about HK$300 million and named it the Hip Shing Hong Centre, as well as a number of other properties. The value of our headquarters has since increased by four times.
'So I have witnessed a lot and learned a lot in the past 60 years. And I am satisfied.'
Does he have any regrets?
'Yes. When I was young I spent too much time on work. I did not have much time for my family and did not pay enough attention to my children's education. Later, when I became successful in my career, they had already grown up. But luckily my wife did a good job and took good care of my family.
'So for the new generation of wealthy people I have this advice: do not only concentrate on work and allow a generation gap to open between you and your children. Otherwise, you will feel something missing in your life in future.'
Mr Fong also expressed concerns about the future management of his family business. 'It is not easy to run a family business. How to pick a right successor? In this respect, western culture is not bad. This is because they are open to appointing outsiders to manage the family business.
'But it is difficult in Chinese society. You will face some questions like why do you ignore your family members and ask outsiders for help? And you will be embarrassed by such questions.
'I hope we can do it gradually. My family and my children still respect me. But what will happen in the third and fourth generation? I don't know.'
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