Chinese Name
The Chinese name is made up of two parts, the Surname (Family Name) and the Given Name. The names are usually three character long, with two and for as the exceptions.
The Surname usually is made up of one (in some cases two) Chinese Character. It is fixed with in the family and follow the male lineage. That is, the children will take up the surname of their father. The exception is when the man is married into the wife's family. Their children will take up the surname of their mother. The surname is considered to be the most important part of the name and a symbol of family honour. Historically, surnames are awarded by the Emperor to his subjects as a reward, and every surname have a story behind it.
The Given Name is usually made up of two characters. The first character is fixed according to the person's generation, and all males in the same generation will have the same first character. The second character is given to identify the person, and to make the name sound auspicious. (Females are not obliged to be named by this rule but some were.)
The first characters are fixed in an interesting way. The elders of the clan will think of some auspicious phrases or proverbs to bring to the Ancestral Hall for the approvals of the Ancestors. The phrase or proverbs approved will become the naming scheme for the future generations. Each generation will take up one character of the scheme in order. Bearing in mind that standard proverbs contains four characters, and that a full length couplet can contain anything between eight to twenty-six character, (it is also not uncommon to use poems) it will be many generations before such activity need to be repeated.
Using this system, you can identify the place of a Chinese male in his family tree easily (the females have no place in this tree). People with the same surnames originated from the same source, and families using the same naming schemes are most probably from the same clan. Illustrating how the traditional Chinese built their lives around their families.
Nowadays, the naming schemes in many families are 'running-out'. Many families choose not to continue this naming practice. Some even deliberately ignore the schemes to come up with their own characters for more auspicious names.