In the early 20th century, Chan Zan travels to Shanghai with his younger sister in search of a new life after thir home village is destroyed by a group of bandits. He notices that Shanghai is dividded into an international settlement under the rule of various foreign countries, such as Britain and Japan. Beside, he observes that the pugilistic world of Shanghai is marred with disunity and the martial arts schools are pursuing individual goals. It represents clearly the state of their own countrymen, instead of uniting to drive out their common enemies (the cforeigners) and regain sovereighnty of their homeland. Fok Yuen-Gap, founder of Chin Woo School, is trying hard to persuade and influence the schools to unite under a common goal of defending their nation from foreign intrusion.