Fung Hon-chu was instrumental in leading the company into a new era. With the influx of refugees after 1949, Hong Kong developed as a manufacturing economy exporting labour intensive consumer products. Li & Fung began to export garments, toys, electronics and plastic flowers on top of its original product lines. A wide range of products now made Li & Fung one of Hong Kong's biggest exporters in dollar terms.

In the early 1970s, the third generation of the Fung family, Victor and William, returned from education in the US to enter the family firm. The two brothers worked with their father to modernize and rebuild Li & Fung into a structured business run by professional management at all levels.

In 1973 the company was listed on the Hong Kong Stock Exchange and the new issue was oversubscribed 113 times, a record that remained for 14 years.