Li & Fung is one of the oldest trading companies in Hong Kong.

Founded in Canton in 1906 by Mr. Fung Pak-liu and Mr. Li To-ming, Li & Fung was one of the first companies financed solely by Chinese capital to engage directly in exports from China.

Initially it traded largely in porcelain and silk before diversifying into bamboo and rattan ware, jade, ivory, handicrafts and fireworks.

Even in the early days of China trade, Hong Kong had always been the deep water port for Southern China as the river port of Canton was too shallow for ocean-going clippers. Fung Pak-liu's second son, Fung Hon-chu, was sent there to establish the firm's first branch and to handle the shipping of its goods.

Li & Fung was formally established in Hong Kong as a limited company on 28 December 1937.

The Second World War interrupted business, and the company ceased trading for several years. It devolved into the hands of the second generation after Fung Pak-liu passed away in 1943. Shortly after the end of the war, Li To-ming, who had been a silent partner, retired and sold his shares to the Fung Family.