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. Chan subsequently signed a music contract with HK EMI,WEA, DMI, and finally moved back to Warner Music. He started singing Cantopop songs, some of which are still popular such as "Ripples" , "Just Loving You" and "Life Expectations" . The song, "Tell Me What I Can Do", was sung with Crystal Gayle in 1984. The song, "Remembrance on Parents' Love" (1981) , is often played on radio stations and frequently chosen for karaoke. In the early 1980s, Chan was a host in the TV show Bang Bang. His co-operation with Leslie Cheung and Paul Chung in the films Encore (1980)and On Trial (1981) , received positive reception from the public and media. He was also a main character in the film An Autumn's Tale in 1987, as Vincent (Jennifer's ex-boyfriend), with Chow Yun-fat (as Samuel Pang) and Cherie Chung (as Jennifer).