A century-old wealthy family that rose from Shanghai

Chapter 170 The Situation

After December, the gold prices in New York, London and Paris began to rise gradually, and the standard gold of the Shanghai Gold Exchange began to rise in the opposite direction.

You should know that Cheng Linsheng had already driven the lowest price down to 388.50, a drop of 18 yuan (one large yellow croaker) in just one month. Cheng Linsheng also paid out 4000 million yuan in short selling quota, so the average price should be around 396-397.

Of course, Cheng Linsheng’s trading volume was only about half a day’s trading volume, but the key point was that there were many followers who short-sold together.

"What's the situation?" Cheng Linsheng came to the exchange and asked his top general Wu Guizhen.

"It's okay, it just reached 390, and there are still a lot of people short selling it." Wu Guizhen replied.

Although international gold is rising a little bit, the short-selling forces have been established this time and no one will let it rise easily.

Cheng Linsheng said directly, "If there are signs of another rise, we will immediately short sell another 1000 million taels to set an example for the market. As long as we hold on until the end of the month, we can make money and also teach the Changjiang Bank a lesson."

"Okay, I'll make arrangements right away."

The Changjiang Bank only bought an order of 1000 million, but Cheng Linsheng spent an order of 4000 million to dump the market. It can be seen that this is a counter-trend operation.

Of course, Cheng Linsheng would not think so. First, he was bearish, and second, he felt that he could influence the Shanghai gold market.

When Wu Guizhen returned to the "battlefield", Cheng Linsheng smiled.

Having inherited his father's business, he did not choose to invest in other industries, but instead was keen on 'speculating on gold' and 'collecting antique calligraphy and paintings'.

Perhaps he felt it was easier to make money this way.

On December 12 (Sunday), the Oriental Daily published an article: Mellon blew the whistle, Hoover rang the bell. Wall Street sent a signal, and America rushed to hell!

The author is Chen Guangliang.

The article pointed out that the collapse of the US stock market was merely the crater of a devastating economic crisis. With the stock market's collapse, the US economy would be plunged into a devastating catastrophe. A terrible chain reaction would soon unfold: bank runs, bank failures, factory closures, unemployment, impoverishment, organized resistance, and the brink of civil war. Similarly, this economic crisis would quickly spread from the US to other industrialized nations, triggering the Great Depression.

The article concludes: In order to prevent assets from depreciating, people will choose to invest in gold. Next, gold will rise and silver will depreciate.

As soon as the article was published, public opinion in China was in an uproar.

So you, a Chinese, can see the affairs of the United States so accurately. Are you an expert on American economics?

Of course, those who know Chen Guangliang understand that the Oriental Daily is the follow-up reporter of the US stock market crash, and it is naturally understandable that they understand what is happening in the United States.

Regardless, the article has caused a huge stir.

"I want to invest in gold. I'll go buy some tomorrow and prepare some large and small yellow croakers at home!"

"Do you really believe it?"

"I believe it. He's a newspaper tycoon. He was the first to predict a stock market crash in the US, and it came true immediately."

“Then buy it quickly.”

When some businessmen saw this news, whether they really believed it, half believed it, or were skeptical, their actions were absolutely honest - that is, they bought some gold to be on guard.

After all, Chen Guangliang is a "newspaper tycoon" and often publishes some business articles in the "Oriental Daily News", so he is still very well-known.

At this time, in the "Kong Mansion" in Shanghai, Kong Xiangxi and Miss Song also saw this article. Both of them were officials and businessmen, so they naturally started discussing it immediately.

Miss Song immediately said, "Should we get involved in the speculation of gold?"

She was completely tempted, but they were just not very familiar with the gold-standard market.

After some thought, Kong Xiangxi said, "I've heard that Chen Guangliang has been speculating heavily on gold on the Shanghai Gold Exchange lately. He's bullish. But he's being suppressed by real estate tycoon Cheng Linsheng, who's using his wealth and influence to put Chen Guangliang in a weak position. So this young man might be trying to capitalize on public opinion to launch a desperate counterattack. It's certainly a brilliant move!"

"Brilliant" does not mean that Chen Guangliang can write articles.

If Chen Guangliang did not have the Oriental Daily, then if he submitted the article to Shenbao or Xinwenbao, the article would not have had much effect.

But Chen Guangliang is the founder of Oriental Daily News, and he has frequently published business articles this year, so his influence is very great.

Miss Song asked inquiringly, "You mean, the gold price won't rise?"

Her business skills are still very poor, and she is better at scheming.

Kong Xiangxi immediately said, "If I had to choose, I would definitely be bullish. The U.S. stock market has indeed plummeted this time, down a full 48%. I heard that Wall Street is in chaos, with a total of $300 billion in wealth lost, equivalent to the total expenditure of the United States in World War I."

Miss Song said, "That's all. Wouldn't it be better if you could send someone to the Gold Exchange to buy the gold tomorrow and take advantage of the opportunity to make a fortune?"

The Kong family originally came from a merchant family, and Kong Xiangxi was both an official and a businessman, so naturally he had some business in Shanghai.

"Okay, I'll make arrangements right away!"

Miss Song was still not satisfied and said, "Let's have dinner with Chen Guangliang someday. We can speculate on gold together and make all the money from that damn land tycoon."

Her mother was a servant in Sheng Huaixuan's family. Miss Song knew how wasteful Sheng Huaixuan's descendants were after his death.

So for a descendant of a wealthy man like Cheng Linsheng, who didn't have much ability herself, she naturally wanted to extort his money.

But at this time, she wanted to use Chen Guangliang as a partner to extort money from others, because she now knew that Chen Guangliang was a resourceful man who knew how to use public opinion.

When Kong Xiangxi heard this, he immediately said, "You are really thoughtful. I'd really like to meet him if I get a chance!"

From looking down on her in the beginning to wanting to "make friends" and "take advantage" now, the couple's thoughts change quite quickly, but it all comes down to "profit".

Chengfu.

"Pah, that's bullshit!"

"As long as there's a newspaper, it can spread exaggerated statements. I think this Oriental Daily News should be banned."

This was Cheng Linsheng’s first reaction after seeing the newspaper.

Then he said to himself, "I just don't believe how many people would believe him, a young man in his twenties. The Great Depression in the United States, the Great Depression in the world, these are obviously nonsense."

Southern Whale.

After reading the newspaper, Song Ziwen murmured, "The article is quite informative. Considering the legendary status of this man, shouldn't we consider having the Huaxia Bank import some gold so that the government can profit from it?"

Thinking of this, T.V. Soong decided to bring it up for discussion at the Ministry of Finance tomorrow.

Suddenly, the storm surged!
Of course, this article may become a masterpiece in a few months!
The next day, Shanghai Gold Exchange.

When the market opened, Cheng Linsheng instructed his subordinates to continue short selling at the price of '390', but he did not expect that they would be swallowed up by the crowd.

Soon Cheng Linsheng no longer dared to short sell because he was the only one doing so, and the price of gold rose sharply.

“396, 50 lots”

“397, 100 lots”

“398, 100 lots”

“400, 500 lots”

“406, 500 lots”

The price fluctuated by as much as 15 oceans in one day, setting a record for the largest fluctuation this year.

The price of 406 is obviously a reasonable price and is not unrealistic.

In other words, Cheng Linsheng spent a whole month suppressing the company and spent 5000 million yuan on short selling, but Chen Guangliang completely defeated him with just one article.

Public opinion is really a good thing!
"Boss, it has been upgraded to 406. What should I do?" Wu Guizhen said anxiously.

Cheng Linsheng continued arrogantly, "What are you afraid of? Chen Guangliang now controls public opinion, so prices will naturally move in the direction he wants. But this public opinion can only control today, how can it control tomorrow? I wonder how long he can use this trick!"

Wu Guizhen thought to herself, "My second-generation rich kid, you used 5000 million in one go, and now your account is equivalent to a loss of millions of dollars. And now the situation has changed, I'm afraid the stock price won't fall this month."

"Should we buy more now?"

"What nonsense! We can only short sell. Gold has risen so much, of course it will fall. It's normal to have ups and downs. But wait a little this month, they are on the rise."

Cheng Linsheng only wants to "short sell" and not "go long". This is his way of thinking.

On that day (12.9), Chen Guangliang did not go to the exchange because he had used up all his money (1000 million). The rise and fall were determined by the market, and he had done what he needed to do.

He attended the groundbreaking ceremony of "New Town Garden", a project that is sure to make money, while gold speculation is just speculation.

According to the current market conditions, he feels that it will be no problem to sell each floor here at an average price of 1.2 yuan next year. Firstly, silver is depreciating, and secondly, Shanghai's real estate market will reach its peak next year.

Xincheng Garden actually has a total of 61 houses, 60 of which are four-story Western-style buildings, one of which is a three-story school building; among the 60 four-story Western-style buildings, some are commercial and residential buildings facing the street (the first and second floors are used as shops, and the third and fourth floors are used for living).

Quite modern!

"Boss Jiang, we have to hurry up and finish the first floor of the school building, as we will build a sales office later. As for the second and third floors of this building, we can add them after we sell all the houses!" Chen Guangliang said at the scene, pointing to the school land.

The building has a 200-square-meter first floor and a 200-square-meter yard, covering a total area of ​​500 square meters.

Even so, the entire New Town Garden is actually not crowded. After all, the site is large and has a good public environment. Of course, many of the buildings are adjacent to each other, and the entire layout is enclosed, with a public garden in the middle.

Jiang Changgeng replied, "Okay, Manager Lu has given us instructions on this matter, and we'll make sure it's done well. By the way, when does Boss Chen plan to sell the property?"

According to his understanding, Changjiang Real Estate had already sold the houses before construction even started, and then they would take the money from the homeowners and start construction.

Now, the houses have not even started selling yet, but Changjiang Real Estate has already put out the first installment of 300,000 yuan to start construction. It seems that they have made money.

Chen Guangliang smiled and said, "Of course, we will wait until next year when the real estate market is at its hottest before launching it. Don't worry, our construction payment will be made according to the contract."

Jiang Changgeng said, "Of course I'm not worried about that. Everyone knows Boss Chen's name now, haha!"

He had also heard about the speculation on the bidding gold. When he heard that today was Chen Guangliang's time to fight back, he actually still had the mind to inspect the construction site.

Chen Guangliang smiled and shook his head, then inspected the construction site everywhere, accompanied by Jiang Changgeng.

The overall structure of the four-story villa has been transformed from a "brick and wood structure" to a "converted-concrete structure", and its shelf life is 60 years.

The foundation needs to be built, then the main structure needs to be made of reinforced concrete, and finally the walls need to be built with red bricks and the roof covered with tiles.

The public opinion generated by Chen Guangliang's article was enormous and could not be digested in one day. The gold price in the Shanghai Stock Exchange began to rise sharply.

Even the middle class began to buy gold and store it at home.

Shanghai residents had a habit of storing "yellow croaker," and later, countless families had their gold confiscated and handed in. Wealthier families would store large yellow croaker (10 taels); less wealthy families would store small yellow croaker (1 tael).

"Boss, the gold standard has reached 410, and it is expected to continue to rise!" Only two days later, Hu Jinshun reported the good news.

The average purchase price of the Changjiang Money House was 396.12 yuan, which meant that the book profit was almost 4%, equivalent to a profit of nearly 40 yuan.

Similarly, Cheng Linsheng also lost more than 150 million.

"It's not the end of the month yet, so don't get too excited!"

"But the current situation is that the whole of Shanghai is rushing to buy gold. I heard that many people have started smuggling it back to Shanghai from Hong Kong and overseas!"

Chen Guangliang immediately asked, "Smuggling? What do they use to buy it?"

No one wants the ocean.

Hu Jinshun said: "Silver"

Chen Guangliang suddenly realized that most countries in the world were on the gold standard, while China was the only country still on the silver standard. While Chinese currency contained 8.9g of silver in some cases, more than 7g, and they also issued paper money, many transactions were conducted directly in silver.

For example, the last time Chen Guangliang borrowed money from Xinshunji Hardware Store, he borrowed 50 taels of silver, and the repayment naturally had to be calculated in silver.

In general, China currently has a wide variety of trading currencies. Gold, silver, ocean dollars, banknotes, and foreign currencies can all be traded directly. Because of this, Shanghai's financial industry is very developed.

"Is there any movement from Cheng Linsheng's side?" Chen Guangliang asked curiously.

As far as he knew, in his previous life, Cheng Linsheng had been bankrupted in the past two years, and Cheng Linsheng had been short-selling. Of course, there was a big factor involved. It was said that in his previous life, Kong Xiangxi had joined forces with Shanghai merchants to seize all of Cheng Linsheng's wealth.

Of course, I don’t know whether these things are true or not!

After all, Kong Xiangxi later became involved in gold speculation and was taught a lesson by Shanghai businessmen, causing his Seven Star Company to suffer a lot of losses.

Hu Jinshun laughed and said, "He tried to sell a few short positions at first, but when he realized the situation wasn't right, he didn't take any further action. It seems he wanted to fight back in the second half of the month, but the current situation is beyond his control. He's already lost a lot of money this month."

Chen Guangliang said: "Well, tell me if there is any situation!"

"Ok"

Recently, Oriental Daily has been reporting on the situation in the United States. After the stock market crash, the US economy has been shaken and is experiencing a major disaster.

Although Chen Guangliang no longer needs to write articles to influence the market, anyone with insight will know that considering the deteriorating US economy, gold should be worth investing in.

(End of this chapter)