Hsu was born in Hua County and had planned to follow his parents into the medical field, until his mother's death in a hotel fire when Hsu was eighteen. Upon graduation from Whampoa Military Academy, Hsu pursued legal studies in Shanghai. He represented the Republic of China at the 1930 and 1934 Far Eastern Championship Games, as a volleyball player and footballer, respectively. Hsu also competed as a swimmer and water polo player. During World War II, Hsu served in the Republic of China Navy. At the time of the Battle of Hong Kong, he was a Lieutenant-Commander and aide-de-camp to Admiral Chan Chak. Hsu played a key role in saving Admiral Chan's life during a dramatic breakout in five small torpedo boats on Christmas Day 1941, which saved a total of sixty eight British, Chinese and Danish intelligence, naval and marine personnel from the Japanese occupation of Hong Kong; for this feat he was made an Honorary Officer of the Order of the British Empire in 1942. Hsu retired from duty with the rank of Rear Admiral. He then owned hotels in Hong Kong, soon expanding operations to Taiwan when he moved there in 1982, and later to the United States in 1992.