In the 1840s and 1850s, attracted by job opportunities abroad, thousands of Chinese migrated to North America, Australia, South-East Asia and Latin America to work as labourers. Although residing in foreign countries, these Chinese adhered to their traditional way of life and therefore had great demands for Chinese goods and foodstuffs. Taking advantage of the geographical location of Hong Kong and its natural harbour, the Chinese merchants in Hong Kong developed a trade providing overseas Chinese with Chinese products as well as importing foreign goods into China through Hong Kong. Nam Pak Hongs (south-north trading houses) were established.[32] Such hongs first appeared in 1858 in the Blue Book, an official yearbook published by the Government. A total of 35 companies were then registered as hongs, rising to 65 in 1859 and 77 in 1860. Addressing the Legislative Council in 1881, the Governor, Sir John Hennessy, remarked that “The Chinese trading hongs, that is, Nam Pak Hongs and other wealthy merchants who now send the manufactures of England into China have increased from 215 (in 1876) to 395. Chinese traders have increased from 287 to 2,377.”[33]
Nam Pak Hong merchants continued to grow in number and by the late 19th century, constituted an integral part of Hong Kong’s entrepot trade. Hong Kong became the centre of a world-wide network of Chinese traders. With the acquisition of wealth and through generous donations to charity, Nam Pak Hong merchants became leaders of the local Chinese community.