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In this second part, Wing Chu, type of karate, master Ip Man and his family move to Hong Kong in the early 1950s where the British have taken control, after their escape from Foshan. The main character opens a school to make money in order to feed his family and teach Wing Chu, but he has difficulty getting students due to his lack of being know by other people in the city. One day, a young man comes to his studio and challenges Ip to a fight, but is easily and quickly defeated and embarrassed. The man leaves humiliated and returns with some friends to gang up on Ip to teach him a lesson, but they quickly regret the choice that they have made. Stunned and impressed by his skills, The man and his friends that have just been defeated become his first students and some others join.
Ip attends a martial arts ceremony and defeats his first challengers, and then gets a draw with the last challenger, Hung. They allow Ip to keep running his school on the condition that he pay the monthly protection fees, but Ip says no. Hung thus has his students throw trash in front of the Wing Chu school and harass everyone interested in joining Ip's classes, causing a street brawl between them and Ip's students. Ip is thus forced to close up and move the school nearer to home. Ip soon confronts Hung, who blames him since he wouldn't pay the protection fees, with Ip telling Hung that he chose to work with the new people that have come to the country. Hung almost forces Ip to finish their fight, but during their fight Ip stops Hung from accidentally kicking his son as he suddenly appears where they were fighting, this gesture earned the respect from Hung. Ip leaves, and the next day, After this Hung seems to befriend Ip and invites him to a British boxing match he had helped to set up.
The best part of the movie when Asian and European cultures collide.The boxing competition begins with the various martial arts schools demonstrating their skills. The british boxer, Taylor "The Twister" Milos, a Chinese-hating animal, during the entire part of the boxing matches, the boxer is openly insulting and attacking the students, causing chaos. Hung accepts Twister's challenge to a fight so he can defend his people from the embarrassment of being in a weak culture. Although Hung is winning at first, in the second round he suffers a sudden, he is hit so hard that he is extremely disorientates. As he fights on, he begins to weaken from his sickness and weight and is eventually beaten to death on purpose by the British boxer, as Hung refuses to go down and allow the man to insult him. News of Hung's death rapidly spreads, chaos ensues. In order to get rid of his bad reputation,Twister announces that he will accept any challenge from the Chinese people, because of what happened to Hung, Ip volunteers to fight the Boxer. Please watch the movie in order to find out what happens.
In the final scene, Ip being introduced to a boy named Bruce lee who wishes to study Wing Chu. Ip smiles and tells the boy to come back when he is older.