Liu was born on 1925 in Anyuan District of Pingxiang to Liu Shaoqi and He Baozhen. When he was two years old, he was sent back to Liu Shaoqi's hometown in Ningxiang County, Hunan for foster care. In 1934, his mother was executed while in captivity by the Kuomintang.
In July 1938, the Chinese Communist Party brought Liu to Yanan to reunite with his father. In the autumn of the same year, at the age of 13, Liu started studying at Yanan Education Primary School.