On King-szu's master offers to duel with King-szu. Not wanting to hurt his master, King-szu feels uneasy. On the day of the duel, his master shows him his true face, as promised, and turns out to be his godfather. This makes King-szu more reluctant to fight, but he enters into the duel only when insisted upon. King-szu accidentally inflicts injury on his godfather during the duel and feels contrite. While Ghost Master casts a glance at Ching Lung, Chu Wun orders Kwun Li to kill him. Kwun Li tries to eliminate Ke Yung, as ordered, but suffers one defeat after another. Ke Yung generously sets him free each time and finally convinces him to defect to him. Cricket poses himself as a fortune-teller and offers guidance to passers-by. Fascinated by his sleight-of-hand, Ke Yung is inadvertently stolen of his purse. On opening the purse, Cricket discovers to his astonishment Ke Yung to be Emp. Chun, and secretly returns it to him……