A century-old wealthy family that rose from Shanghai

Chapter 168: New vs. Old

"Boss, this is the current financial statement of Changjiang Real Estate. I'd like to show it to you. In addition, this month's installment has been received in full." Guo Deming walked into the office and handed over a stack of documents.

Chen Guangliang nodded and began to read.

The current cash flow on Changjiang Real Estate's account is 68.65 yuan. The Yuyuan Road project requires an expenditure of 31.23 yuan in the past month, and the funds available for the time being are less than 37.5 yuan.

"The initial construction fee for the New City Garden project is 30 yuan, and it must be paid on December 12th." Chen Guangliang frowned.

This money is too tight!
Guo Deming immediately said, "Usually, before December 12th, we can collect all the monthly installments, bringing in 9 yuan. So, if the boss wants to use the funds to develop taxis, he can take away 16 yuan."

Generally speaking, as the chief financial officer, he would not recommend using funds so tightly.

But Guo Deming was also a consultant for the Changjiang Money House and knew that the boss still had a large amount of gold bars, so there was no problem with funds.

After some thought, Chen Guangliang said, "I've thought about it. Changjiang Taxi might be able to get support from the bank. We shouldn't rush to lend them the money. What you need to do now is to convert the monthly installments into gold or US dollars as soon as they arrive."

After much thought, he felt that using his own money for development would be a waste of his influence and credibility.

Now the major banks and money houses have a huge amount of deposits, and they need to pay interest to depositors, so they have to find a way out for the funds.

Setting up a real estate trust department is just a small industry, and it mainly provides loans.

"Okay, I will exchange the currency in time." Guo Deming didn't say anything more.

Now the boss is bullish on gold and the US dollar, and bearish on silver and silver dollars. So at this time, if he works hard to borrow money and then exchange it for US dollars and gold, he is gambling on the foreign exchange difference.

“After the exchange is completed, it is also convenient for me to withdraw money at any time.”

"Yes"

There is no need to rush to order cars. If the funds of Changjiang Real Estate are tight, any problem may easily cause a chain reaction.

So Chen Guangliang decided to find another way to deal with the funding issue.

Although he had previously taken out loans of up to 415 million yuan, they were actually based on "land mortgage" and "real estate income mortgage", and were clearly risk-free - because the house had already been sold.

Next, when he orders a car, he can consider using his "credit" to use the car itself as collateral to obtain a large loan.

mid-December.

Cheng Linsheng visited the Shanghai Gold Exchange and asked Wu Guizhen, the head of Yongda Gold, "Has anyone of note recently arrived at the futures market at the Gold Exchange?"

Wu Guizhen immediately responded, "Yes, the other party is Chen Guangliang from the Yangtze River Bank, the newly-crowned real estate tycoon!"

Cheng Linsheng immediately said angrily, "What kind of real estate tycoon is he? He just used some tricks to sell some small villas. By the way, is he long or short?"

Cheng Linsheng, who was born in 1886, is actually years old this year, but he is a rich second-generation.

His father, Cheng Jinxuan, owned two "dragons": one stretching from the Henan Road to the pitching court at XZ Road, and the other stretching from New World to Carder Road and the area surrounding Shimen Second Road. Cheng Linsheng inherited his father's business. As Shanghai prospered and land prices soared, he collected a significant amount of rent, accumulating approximately 3 million silver taels (and still rising). He was known as Shanghai's "land king" and one of the wealthiest Chinese in the city. He also opened the Gentai Hehe Flour Factory to produce monosodium glutamate, invested in the Daxin Company (one of Shanghai's four largest companies), and established the Yongda Gold Shop and Hengji Money House.

Since 1926, Cheng Linsheng has been keen on gold speculation and opened Yongda Gold Shop, Hengji Money House, etc.

Wu Guizhen knew her boss's temper and immediately said, "He's long and bullish. He's now our rival!"

Clearly, they are selling short.

Cheng Linsheng said, "He's not our opponent, he's just famous enough. So, let's increase our short selling efforts and teach him a lesson at the Gold Exchange. Don't think you can speculate anywhere!"

He had a high opinion of himself and, with his abundant financial resources, he considered the Shanghai Biaojin Market his own place, believing that with his own funds, he could make the market fall.

The fact is not an exaggeration. After all, once a large amount of short selling occurs, the market will inevitably experience a panic selling wave.

After all, the gold futures market is also operated by "people", unless of course it is the historical trend.

"clear"

along with.

Cheng Linsheng shorted a large amount of funds, and the gold futures price at the Shanghai Gold Exchange indeed fell below 400.

Faced with this situation, Hu Jinshun knew that they were being targeted and immediately reported it to Chen Guangliang.

"Then buy in big. Someone is sending us ammunition. What are you afraid of?" Chen Guangliang said with a smile, "Besides, we're specifically targeting their short-selling orders."

Hu Jinshun reminded: "It's just that Cheng Lin is very wealthy. If he suppresses the bid price, I'm afraid it will have a huge impact."

Chen Guangliang smiled and said, "Don't worry, I will bear all the consequences."

Hu Jinshun no longer hesitated and said, "Okay, I understand!"

Although the quota of Changjiang Money House in the gold futures market is only 500 million yuan (100 million yuan in margin), Chen Guangliang is not afraid of Cheng Linsheng's wealth at all.

It's very simple. As long as the gold markets in London, New York and Paris rise, the standard gold in Shanghai will also rise. This is the general trend.

Of course, if the overseas market is just rising normally, then Cheng Linsheng's large amount of funds will be very useful; on the contrary, if the overseas market rises sharply, then Cheng Linsheng's role will be weakened.

Chen Guangliang looked at the Oriental Daily in his hand. As of mid-November, the U.S. stock market had fallen by more than 11% and was still falling.

Obviously, the "stock market crash" has almost reached its lowest point. At this time, Chen Guangliang can publish an article, extending the "US stock market crash" to the "US Great Depression" and further to the "world economic depression". This is completely reasonable and well-founded.

Of course, there is no rush now. After all, the Yangtze River Bank has only taken in less than 200 million yuan in deposit, and will officially purchase the goods later.

Moreover, there will be no delivery at the end of November, and the official delivery will not be until the end of December, so there is no need to rush.

Shanghai Gold Exchange.

"The Changjiang Bank and the Yongda Gold Bank are at loggerheads!"

"What's going on? The Changjiang Bank seems to be owned by real estate tycoon Chen Guangliang, and the Yongda Gold Bank is owned by veteran land tycoon Cheng Linsheng. Why are the two of them fighting?"

"Haven't you noticed? Yongda Gold and Hengji Bank have been shorting large amounts of property these past few days, and Changjiang Bank has been buying heavily, taking over their orders." "I was thinking trading has been a bit brisk lately. Turns out these two are just clashing. But can this new real estate tycoon truly rival the established land tycoon?"

"I'm afraid not. Chen Guangliang only has three million in capital at most, while Cheng Linsheng has at least thirty million."

"So should we follow Cheng Linsheng in short selling?"

"Me and Cheng Linsheng, after all, he is powerful."

As more and more banks and gold houses were involved in this "gold bidding war", the trading volume of the Shanghai Gold Exchange became more active, with an average daily trading volume of more than 200,000 large yellow croakers (futures, the volume of only one exchange).

The contest between Chen Guangliang and Cheng Linsheng has gradually attracted the attention of many people.

“卖出50手（5000两、500根大黄鱼）、395.55（10两、1根的单价）”

"Eat 50 hands"

Each time it was a big deal, but it was obvious that the bulls on the Changjiang Bank side were in the upper hand.

The short sellers, led by Cheng Linsheng, took the initiative.

One day, Yan Zhiduo found Chen Guangliang to inquire about the situation.

"After all, you're a novice in this business. As soon as you step in, people will try to bully you. And this time you're running into Cheng Linsheng, a wealthy landowner. Are you sure you can handle it?"

Chen Guangliang smiled and took out a piece of paper and said, "Uncle Yan, this is the article I just wrote. Please check it for me!"

Yan Zhiduo was not particularly anxious. After all, although the futures speculation was a big deal, the Yangtze River Bank had only invested a total of 500 million yuan in it. Even if there was a loss, it would not be a big loss.

Currently, the daily trading volume of gold futures in Shanghai is 8000 million (statistics show that in 1926, it was 6800 million large yellow croakers). However, this is futures after all, and a 1% increase or decrease is considered a violent fluctuation.

Yan Zhiduo took the article and saw it was titled "A Great Global Depression is Coming." Based on the US stock market crash, the article predicted a global economic depression, which would include a sharp decline in industrial production, widespread corporate bankruptcies, mass unemployment, and severe economic losses. Finally, it argued that in the event of a global economic depression, gold would become a new investment hotspot, leading to a long-term bullish price.

"Are you trying to drive up the price of gold through public opinion?" Yan Zhiduo said in disbelief.

This young man has actually grown into a person who can influence the financial market because he has the "Oriental Daily" as a public opinion weapon, and he writes very well.

Chen Guangliang smiled and said, "I plan to publish this article around mid-December. By then, the Oriental Daily will also report other news on this topic, strongly bullish on gold. Therefore, no matter how strong the short position is at this time, it will be of no use. It will only lower my costs."

Remembering Chen Guangliang's prediction of a US stock market crash, Yan Zhiduo said, "Why not continue increasing the quota for gold futures? After all, your spot gold futures are also a guarantee, and it also has your credibility."

Assuming the benchmark price drops from 405 to just over 380, it is actually equivalent to a 5% drop, and an investment of 50 million will only result in a loss of .

But in fact, it is not so easy to manipulate this 5% by human means. After all, the daily trading volume is 8000 million oceans, and this is only the Shanghai Gold Exchange.

Although Cheng Linsheng claims to have assets worth 3000 million, most of them are fixed assets.

Chen Guangliang said, "That's exactly what I'm thinking. I'm planning to increase the quota to 1000 million yuan and am preparing to discuss this with the Gold Exchange's board of directors."

The Gold Trading Council will monitor the members' quotas. If your recent trading exceeds this quota, they will also assess the risk and either ask you to add margin or require you to prove your asset status.

"Yes, Cheng Linsheng has huge capital, but you have huge public opinion. Once public opinion is formed, a lot of capital will turn to long positions, and the price will naturally rise."

"Boss, Changjiang Money House continues to buy, and it seems that they are determined to hold on to the end!" Wu Guizhen reported the situation in the trading field immediately.

"Then let's continue to double our short selling. It's not difficult. Let's push the price down to below 390 and let him see my ability, Cheng Linsheng." Cheng Linsheng said without taking it seriously.

Assuming that the credit limit of the Yangtze River Bank is 1000 million, then Cheng Linsheng does not need to take out a loan at this time and can reach a credit limit of million.

Wu Guizhen said: "No problem. We are not the only ones actively shorting now. Many of our Shanghai peers are also following suit. The price has been pushed down to 394.5 yuan today. As long as we continue to push, the price will easily fall below 390 yuan."

At this stage, it is clear that 'people' have the upper hand.

As for the "stock market crash" in the United States, naturally no one will pay attention to it. Everyone is paying attention to the gold markets in New York, London and Paris. As long as the fluctuations there are not big, and there are strong figures in the gold exchange to suppress the gold price, the problem will naturally not be big.

Just like this time, the price of gold was around 406 at the beginning of the month, but now it has fallen by 11.5 yuan. This is the result of Cheng Linsheng taking the lead in suppressing the gold price.

After Wu Guizhen left, Cheng Linsheng stood on the railing on the second floor, looking at the lively scene below, and suddenly felt that all living beings were under his feet.

"It feels so good to control the market!" Cheng Linsheng thought to himself.

Chen Guangliang does not put all his energy into speculating on gold. He only checks and supervises it every day, and still spends his time on real estate.

In early November, Cheung Kong Properties and Kong Yu Kee Construction Company signed a "construction contract" and specially invited a reporter from Oriental Daily to report on the project.

Since the construction of 'New Town Garden' began, it has been frequently reported in the media as part of business news.

There are so many things to report, mainly the concept of a "large community" in "New Town Garden" and the emergence of the term "city within a city".

"Boss Jiang, on the 9th of next month, the funds will be paid to you oceans on time, but the settlement will be in gold!" Chen Guangliang said after signing the contract.

You can also enter on the 9th, enter on the same day and pay on the same day.

Jiang Changgeng immediately said, "No problem. Gold and silver are no problem! Boss Chen, don't worry. We will definitely complete this project and treat it as the representative building of our 'Jiang Yuji Construction Company.'"

"With your words, I feel relieved!"

Chen Guangliang and the construction company did not care about personal relationships, but only considered whether the other party could guarantee the quality and construction period.

If the cooperation is good, the payment will be made on time and we can continue to cooperate in the future.

If the cooperation is not good, it will ruin their reputation.

After the construction contract was signed, the two sides took a group photo, mainly at Chen Guangliang's request. In his business career, he would take photos to commemorate every important event.

Afterwards, Chen Guangliang and Jiang Changgeng accepted interviews from reporters. This news did not require taking photos, only text interviews.

(End of this chapter)