A century-old wealthy family that rose from Shanghai

Chapter 162: Gold Speculation
In just seven days, Changjiang Real Estate sold another 180 floors of residential properties, recovering a large amount of funds.

As of mid-September, Changjiang Real Estate has sold nearly 9 residential properties on Yuyuan Road, excluding the original "land lease and construction" part; at the same time, Changjiang Real Estate has only 60 houses left on Yuyuan Road that have not been sold.

In the conference room, Chen Guangliang told the management team, "Although the remaining 60 buildings have not been sold, they have been scheduled to start construction at the same time as the recently sold ones. There is no need to consider when to sell them."

That is, build and sell at the same time, and this will be the mainstream in the future.

Including the residential part of the land of the "Dahua Hotel", Chen Guangliang plans to build first and then sell it to increase his credibility.

Lu Yuantai nodded and said, "The planning and design drawings have already been completed, and there are no problems with the construction company. Construction of these 120 houses will begin in early October."

Chen Guangliang expressed satisfaction with everyone's work, then said, "In short, our focus this year is on Yuyuan Road. If we can execute these projects beautifully, Changjiang Real Estate will truly establish itself in the Shanghai real estate market. As for the Jing'an Temple Road (Nanjing West Road) project, this year's main focus will be on finalizing the planning and design, and also on starting construction on the residential portion after next year's Spring Festival. Sales are not a rush."

Lu Yuantai immediately said, "Okay, Zhuang Jun Architects is making very fast progress and should be finished by the time of handover in November."

This time, the residential unit types, villa shapes, and community layouts are all brand new designs, so a professional design unit is needed.

In this way, we can complete the cooperation with the construction company this year and start next year.

Finally, Chen Guangliang said, "I plan to establish a Changjiang Bank, which will become our financial subsidiary in the future and a very important company. The initial capital is 300 million taels of silver. So, Xinhe, you will be the financial manager there, and Wei Yi will handle the work here. You will also receive a share of the year-end dividends."

Upon hearing this, Wu Xinhe quickly agreed, "I'll complete the handover immediately and take up my new position at the new company!"

A bank with a 300 million yuan investment was clearly the boss's lifeblood. He had previously been a financial manager, a promotion. Conversely, at Changjiang Real Estate, although he was also a financial manager, he had Guo Deming, the deputy general manager, in charge.

Chen Guangliang nodded. He sometimes liked to scold people, but it was definitely because his subordinates did something wrong or not done it well enough, but he would not reduce the welfare benefits they deserved.

"De Ming, you can also take on the role of assistant manager. You won't have to work there, it'll just be a part-time job. Also, Changjiang Real Estate can't let down its guard, especially with regards to capital recovery. This time, I want four people to go to the new company, so Changjiang Real Estate will be hiring eight more employees."

Changjiang Real Estate now has 25 employees and has been adding staff. The people Chen Guangliang has selected must be the best and brightest.

What he values ​​most is cultivating talents, so the company will never be short of people even if it continues to expand.

Guo Deming said: "Okay, I understand what the boss means!"

Afterwards, Chen Guangliang discussed some details of the work with everyone.

Especially when it comes to collecting the 'installment payments' for each period, there are always some minor problems.

In late September, the Changjiang Money House was officially established.

This company does not operate to the public, but only applied to become a member of the "Shanghai Gold Exchange". Because it was introduced by Yan Zhiduo and Chen Guangliang was well-known, he quickly paid the deposit and officially became a member of the "Shanghai Gold Exchange".

At the same time, Chen Guangliang injected 270 million yuan into the Changjiang Money House, of which 200 million yuan was loans from various banks and money houses, and the other 70 yuan was the disposable funds of Changjiang Real Estate.

如今陈光良的贷款，已经高达415万大洋，可谓债务压身。其中地皮贷款是70万大洋、大华饭店项目贷款是145万大洋（占股55%）、长江钱庄借贷200万大洋。

Of course, this loan of 415 million yuan is exactly what Chen Guangliang can afford.

First, the 70 land loan and the corresponding interest. As long as the land on Yuyuan Road is developed and sold, the land cost recovered will be enough to pay off the principal and interest.

打个比方，5月份售罄的那122幢洋楼，地皮回笼就高达25万大洋（纯利100万另算）；后面的140幢、60幢、60幢三个项目，地皮回笼至少也是50万大洋以上。

Therefore, after the Yuyuan Road project is sold out, the land loan of 70 yuan and the corresponding interest can be repaid, and there will still be a net profit of 310 million yuan (after deducting the dividends of 9 yuan to employees).

Therefore, the remaining 310 million in net profit is just the capital that Chen Guangliang can use to "speculate on the bid price"; as for the "Dahua Hotel" and surrounding land projects, although he spent 145 million in land fees, it has actually increased by more than %.

Based on these circumstances, Chen Guangliang dared to spend 270 million yuan to speculate in gold!

Of course, he will use half of the funds to buy physical yellow croaker, and the other half will be used to trade futures, which of course will be magnified by about five times.

Zhufanli between Shanxi Road and North Wuxi Road.

This is the location of the Shanghai Gold Exchange. Chen Guangliang and Yan Zhiduo came to the exchange together.

Speculators flocked in, and the areas around North and South Wuxi Road were crowded with people. The Gold Industry Office was always busy with people. This was the actual situation in this area.

Of course, only if you become a member unit will you be eligible to trade.

A group of ordinary gold speculators would inquire about information here, and then buy and sell through money houses, just like securities brokers in later generations.

Shanghai people all have the habit of putting "gold" in their homes. Rich people always put a few big yellow croakers (yellow croaker) in their homes, while slightly more ordinary families put small yellow croakers (1 tael of gold).

"Look, this is the trading hall. The buying and selling is so active here that it's hard for outsiders to imagine!" Yan Zhiduo said at the railing on the second floor, pointing to the circular central patio on the first floor.

Chen Guangliang nodded. He also found that the trading atmosphere here was very good. "Uncle Yan, after the transaction is concluded, how will the proof be obtained?"

Yan Zhiduo said, "After both parties reach a deal, an exchange employee will register it for both parties, and both parties will also record the transaction in the book, and that's considered a deal. If one party loses money and can't repay, then the party they traded with becomes the creditor, and they can only demand repayment. But in theory, the members here are basically strong and reputable units, so that kind of situation won't happen!"

I cannot agree with the latter statement. According to Chen Guangliang, the reputation here is indeed good, but there are also special circumstances.

A case of good credit: In a previous life, real estate tycoon Cheng Linsheng (a wealthy second-generation) boasted assets of 5000 million silver taels at their peak. However, during this period of short selling, he recklessly mortgaged his real estate for loans, ultimately losing over million in assets. This coincided with the January Incident, which also significantly reduced his property holdings and ultimately led to bankruptcy. The nephew, who had little to do with the incident, ultimately paid off his uncle's debts, ultimately ending up in ruin.

The above situation shows that no matter how rich you are, you have to pay back the money you have!

But there is another situation, that is 'power'.

During a subsequent market rally (after September 1932, when the gold standard was gradually abandoned by various countries and gold prices plummeted), the "Seven Star Company," formed by Kong Xiangxi, Song Ailing, and seven others, also ventured into the Shanghai Stock Exchange to speculate in gold-marking and veil-making businesses. However, a coalition of local Shanghai merchants effectively caused the Seven Star Company to suffer a major setback in the gold-marking business.

However, the shareholders of the Seven Star Company had no credibility and went straight to Du Yuesheng to settle the matter. Du Yuesheng simply said that he would bear the debt himself, and those businessmen did not dare to ask for it anymore!
This fully demonstrates that nothing is absolute!
"Uncle Yan, I've thought about it and decided we should use two-thirds of the funds as spot deposits and the remaining one-third as futures margin, and then increase it fivefold to buy more."

三分之二便是200万两大洋（1大洋理论上等于1两白银），目前金银的兑换率是1:38.5，所以一根大黄鱼的价值是385两白银，但现在行情是一根大黄鱼价值405.5大洋。

The equivalent of two million taels of silver could buy 4900 large yellow croakers (4.9 taels of gold). Of course, you had to pay a commission to the exchange, but it wasn't expensive. Yan Zhiduo immediately asked, "Are you lacking confidence?"

This kid, is he lacking confidence before he even starts?
To be honest, the reason why he was willing to invest 30 oceans was because of Chen Guangliang's luck.

This is called 'borrowing luck'!
As for Chen Guangliang’s analysis, he felt that it might not be accurate!

Chen Guangliang laughed and said, "How could that be? I'm very confident, but I like to be calm and steady when doing things. Besides, 500 million is a lot of money for futures trading. We will soon become a strong force in the market!"

Yan Zhiduo finally felt relieved and said, "That's true. It's better to be more cautious!"

Originally, he believed that a fluctuation of 10% or 20% in the gold-silver exchange rate was considered good, and according to Chen Guangliang's analysis, futures trading was considered a good investment.

哪知道，今年全年金银兑换率还是1:38，明年就能到1:62，后面更是达到1：70，到1933年最低则是1:80。

This is also why Chen Guangliang said that if he did not invest in gold, the value of his assets would be reduced by half.

Afterwards, the two returned to the office building of the Changjiang Bank and prepared to officially start preparing to purchase spot goods.

It is only late September now, and there is still a full month before the "U.S. stock market crash" in late October. During this period, you can first cash in on spot yellow croaker and deposit it in the safes of major banks and money houses.

Wait until late October, then start buying long gold futures in the market, and keep buying!
Because the U.S. stock market will fall until mid-November, and then the U.S. economic recession will begin, and then it will sweep across Europe. It will take at least the beginning of next year for gold prices to gradually rise.

Chen Guangliang took some time to come to the Oriental Newspaper Office to handle some matters.

Currently, his focus is on real estate and finance, with only a limited focus on other industries. Fortunately, all industries have well-established corporate systems and well-managed companies, so there won't be any major mishaps.

In the conference room, Chen Guangliang held a meeting with the management of Oriental Daily. The other two shareholders, Yu Qiaqing and Du Yuesheng, did not attend because Chen Guangliang basically did not invite them to meetings.

It gives people the feeling that they are being cheated out of their money!

Of course, he is getting his comeuppance now. He heard that Yu Qiaqing had ripped off Wing On Company for 200,000 taels of silver before transferring the name of Wing On Savings Bank.

Originally, he should have received a share of the profits, at least 30,000 yuan, and Yu Qiaqing had given it to him personally. However, almost a month had passed since the incident, and Yu Qiaqing had not expressed anything at all.

Chen Guangliang understood that it was not that he forgot, but that he did not want to give it at all!

Make a note of him in your little notebook.

As for Du Yuesheng's involvement in the Oriental Daily News, it was primarily represented by Hong Yanbin, so he didn't need to be present in person. After all, Hong Yanbin was considered his most talented disciple. Chen Guangliang also gave Hong Yanbin a certain amount of power, at most excluding him from interfering with the content of the report.

"The first thing is about the price increase of the Oriental Daily News. Have you made any preparations and conducted any investigations?"

The sales volume of Oriental Daily News is now over 8 copies. Logically, it should be no problem to make one hundred thousand dollars a year, but in reality, they are just breaking even now.

Huang Chunsun immediately said, "We've already done some research. Oriental Daily's readers are quite loyal and generally rank among the general public, primarily the wealthy and white-collar class. Based on this research, we know there's no problem with raising prices. We're already selling cheaply, and we've been repeatedly criticized by Shenbao and Xinwenbao!"

The same number of copies, and even the content of Oriental Daily is more comprehensive, but why is your price still 2.5 points? It would be strange if you are not criticized by your peers.

But the background of Oriental Daily News is the Ningbo Gang and Du Yuesheng, so what can they do?
Some people say that the most powerful people in the Shanghai stock market at present are Shi Liangcai and Du Yuesheng.

Shi Liangcai was the owner of Shen Bao and a major shareholder of Xinwen Bao. Someone once said: "The commander-in-chief has a million soldiers, and Shi Liangcai has a million readers (an exaggeration)", so Shi Liangcai was indeed very powerful.

Shi Liangcai was not only a big boss in the newspaper industry, but he was also very wealthy. When he was running a newspaper, he was already a wealthy businessman, and his assets were probably worth millions (including fixed assets).

"Okay, in that case, the Oriental Daily News will be raised to 3 cents, just one cent less than the Shen Bao!"

Huang Chunsun nodded and said, "This way, our Oriental Daily will no longer have a problem making over 100,000 yuan in profit a year!"

It is not the case that the higher the newspaper sales, the greater the profit.

The sales volume of Shenbao was 120,000 to 130,000 copies, and the annual profit was about the same, maybe a little more.

Therefore, Oriental Daily no longer pursues sales volume, as long as it remains stable at more than 8!
Chen Guangliang then said, "The inclusion of horse and dog news in our supplement is somewhat damaging to the newspaper's reputation. We might as well remove it and publish it as a separate 'sheet' called Tips. With this content removed, the supplement can include more celebrity commentary, celebrity gossip, and novel series."

Zhang Jinglu immediately stepped forward and said, "Right. Initially, we were motivated by sales. Now that our sales have stabilized, we can publish this content separately. Furthermore, the tips can be directly priced for profit, and advertising will bring even greater profits. At the same time, this won't affect the Oriental Daily. We can also publish the tips separately and only sell them at racecourses and greyhound racing tracks, minimizing the impact."

No matter how expensive a single tip is, it is not worth mentioning to gamblers.

The Oriental Newspaper has already formed an editorial team to write horse and dog classics, so naturally it cannot be disbanded.

"Okay, it's settled!"

Next, Hong Yanbin asked, "What about the Oriental News Building?"

It means asking about the progress!

The Oriental Daily bought more than two acres of land in the eastern section of Yuyuan Road, near Jing'an Temple, for 5 yuan.

Chen Guangliang said, "We've already asked Zhuang Jun Architects to design it, and the architectural drawings will be out soon. It's seven stories high, with a construction area of ​​over 5000 square meters, and the cost is only 20 yuan."

Whether the construction cost is expensive or not, the materials and equipment used, as well as the building area are selected.

Everyone was delighted. After all, this price was completely affordable; it was about two years’ profit!

The meeting went smoothly and Chen Guangliang still had control, especially since Huang Chunsun had defected and Zhang Jinglu and other editors and reporters were his loyal fans.

Of course, Chen Guangliang and his shareholders are currently getting along very well. The Oriental Daily News does not publish bad news about Du Yuesheng, nor does it publish bad news about the Commander-in-Chief. In short, it is equivalent to a "moderate" and has the same line as the News.

It’s just that in some areas, Oriental Daily does better than News!
(End of this chapter)