Chan was born on 7 September 1958 at Queen Mary Hospital in Pok Fu Lam. His father was Chan Pengfei (1923 – April 5, 2019), a businessman in the watch industry.. He won third prize at the "HK Pop Song Composition Competition" in 1977. In that same year, he made his acting debut with Hong Kong Television Broadcasts (TVB) through a TV drama called Sweet Babe. In 1978, he won first prize at the "Hong Kong Yamaha Electone Festival". He held his first music concert in Hong Kong that same year. His first music album, entitled First Love, was released in 1979. A song from the album, "Tears Dropping for You" , became his best-known song.