Chan was born on 7 April 1954, in British Hong Kong, as Chan Kong-sang, to Charles and Lee-Lee Chan, refugees from the Chinese Civil War. He was nicknamed Pao-pao Chinese: 炮炮 ("Cannonball") because the energetic child was always rolling around. His parents worked for the French ambassador in Hong Kong, and Chan spent his formative years within the grounds of the consul's residence in the Victoria Peak district.

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