Li CHEUNG KONG HOLDINGS/HUTCHISON WHAMPOA

HONG KONG Li CHEUNG KONG HOLDINGS/HUTCHISON WHAMPOA Asia's richest man, Li Ka-shing, is preparing to pass on the keys to his empire. Which son will he choose--the steady, cerebral firstborn or the flashy, creative younger son? 2002 Revenues: $20.5 billion

Wealth will not pass beyond three generations," warns a Chinese proverb. Genes, the thinking goes, don't always carry the entrepreneurial DNA of an empire's founder to his descendants, who consistently dissipate the ancestral fortune. That quaint admonition must be weighing on the mind of Hong Kong--based alpha tycoon Li Ka-shing. Though he has given no indication that he is contemplating retirement, Asia's richest man (estimated net worth: $12.4 billion) is 75 years old. Which of his two sons--quiet, nose-to-the-grindstone Victor or sociable, creative Richard--will take over the family businesses? The Li holdings are massive and include property giant Cheung Kong Holdings, one of Hong Kong's biggest property developers, and the ports, retailing and telecom conglomerate Hutchison Whampoa. It's a question that Li, as well as investors in his publicly traded companies, which have a combined market value of $74 billion, must inevitably confront in the coming years as he attempts to safeguard his immense legacy.

Succession is always a thorny topic, but Li's case is sensitive because of his reputation as a dealmaker whose instincts may be impossible to duplicate. Li is also considered one of Asia's most forward-thinking businessmen. Hutchison Whampoa was an early investor in cell-phone companies such as Voice Stream and Orange, which were sold for huge profits. The company operates mobile-phone networks in Europe, Asia and Australia, though analysts are questioning Li's unprofitable investments in next-generation, or 3G, mobile-phone networks. It has major retail holdings in Europe (Superdrug) and Hong Kong, and also owns ports in the Americas, including those at each end of the Panama Canal.

Unlike many Asian tycoons, Li relies on nonfamily professionals to run his empire. That said, analysts don't expect him to choose a successor outside the bloodline. The betting is that Li will pass his scepter to eldest son Victor, 39, a Stanford-trained engineer and deputy chairman of Cheung Kong.

The choice would certainly be in keeping with Chinese tradition. Victor has been the classic filial understudy. He lives with his wife and daughters in the same house as his father. In a rare interview, Victor declined questions about succession but stressed how much he is like his legendary dad: "We're good partners working together ... When we reach decisions, we almost always arrive at similar conclusions." Victor adds that he has taken on many of the day-to-day business operations. At company headquarters in downtown Hong Kong, Victor says, he toils away with middle managers in his ninth-floor office, which he calls "the engine room," while Dad plots big-picture strategy from the palatial 70th floor.