A century-old wealthy family that rose from Shanghai

Chapter 246: Making Money First
On May 5, the Huaxia Capital Security Team took over Jiangwan, and on the 19rd, Zhenru. On the 23th, the Beijing-Shanghai Railway resumed full traffic, and on the same day, the Wusong Fort was taken over.

Shanghai gradually returned to peace, but the impact of the war was still huge. Not only were there ruins everywhere, but there was also a raging plague.

The plague broke out in April, mainly in the war zone in Chinese territory. The Japanese had not yet withdrawn at that time, so there was no effective organized epidemic prevention in Chinese territory.

On this day, Chen Guangliang came to the administrative office building of Ping An Bank on Jiangxi Middle Road.

Xia Gaoxiang immediately reported a piece of important news to him: "Boss, dozens of companies have recently increased their cooperation with Ping An Bank. Deposits alone have skyrocketed by over 480 million, doubling our strength. Here's the list of companies. I'll compile it for your review!"

Chen Guangliang was a little stunned, but he quickly recovered. He guessed that the factory owners who had avoided some losses decided to repay him for his reminder.

After all, the combined losses of forty or fifty factories were reduced by more than 50 million, so they felt very fortunate.

When he looked at the list, it was true. They were all the companies for which he had issued warnings.

"Well, although they came prepared, we still have to do our job as a bank. Our deposits are now approaching 10 million, which puts us in the category of a mid-sized bank, so we must be more cautious. We should be cautious when it comes to loans, but as long as you have good reputation and assets as collateral, we can provide a loan to the factory."

"I understand. Our deposits are already quite sufficient, so we will be a little more relaxed on lending."

Of the 200 million deposits, Chen Guangliang personally and his four major companies account for about 250 million; in addition, he also placed a million gold certificate in Ping An Bank, which also falls under the category of guarantee.

So with these as 'guarantees', Ping An Bank will invest 380 million yuan in government bonds.

“How’s the public debt going?”

Xia Gaoxiang immediately said, "Currently, we've purchased over 260 million worth of government bonds, excluding the six-yuan bond and tariffs, and we're still buying more. Meanwhile, the government bond market is quite strong, not falling, but not rising either. I suspect this is due to the temporary liquidity shortage in Shanghai."

Shanghai is a place with a very developed financial sector. There may be a shortage of money this month, but money will be available quickly next month because tens of millions of silver taels may flow into the Shanghai market in a short period of time.

Chen Guangliang speculated that once the Japanese withdrawal was complete, which would be in June, the nation's wealth would quickly flow into Shanghai. Even silver from overseas would flow into Shanghai. This was partly because Shanghai was considered safe, especially in the concessions. Furthermore, because China was on a silver standard, silver was the most valuable commodity in China, prompting many foreigners to bring their silver to Shanghai for investment or exchange.

It is precisely because of this effect that interest rates in Shanghai are constantly changing. The fastest changing interest rate is interbank lending. It may be only 6 or 7 percent this month, 10 percent next month, and 12 or 15 percent the month after that.

How did this wave of government bond prices rise?
Chen Guangliang analyzed a possibility: the current government bonds are relatively strong, which means that there is no room for decline; when a huge amount of silver flows into Shanghai, everyone will find that there are not many investment projects, then the 6% government bonds will obviously be a very good investment method.

The current bank deposit interest rate is only 3-5% a year. The key point is that time deposits are not as easy to sell as government bonds, which can be cashed out at any time.

“Is there any big movement in the bond market?”

Xia Gaoxiang replied, "There's nothing particularly dramatic going on. It's just that government bonds are relatively strong, and buying and selling are normal."

Chen Guangliang nodded. Currently, there are about 10 billion in government bonds on the market, with annual trading volume reaching to billion, accounting for to percent of the stock exchange's total volume. In this era, stock trading volume is far less than that of government bonds.

In addition, the government bond market no longer allows "non-physical short selling", so the trading volume is real.

Even if Du Yuesheng followed his advice and invested in government bonds, the amount would probably not be large, perhaps around one or two hundred, and he would just buy it secretly and not make a big fuss about it.

now.

Ping An Bank has deposits of nearly 380 million yuan, and it has invested million yuan in government bonds. Naturally, it will have to relax its loan policy next, after all, it also has to pay interest.

"Then we will increase the government bond limit to 400 million. Furthermore, we will temporarily limit loans to around 25% of deposits, and use the remaining funds as working capital."

Xia Gaoxiang said: "There is certainly no problem with such short-term control, but the loans are too few, and the interest on government bonds is not much higher than the interest on deposits. This will be detrimental to bank profits in the long run."

Chen Guangliang said: "Don't worry, the government bond will rise!"

"Ok"

Xia Gaoxiang stopped trying to persuade him, as the boss was still used to having the final say on the bank's major plans.

Fortunately, the boss doesn't interfere in everything, so they also have room to show their abilities.

After Xia Gaoxiang left, Chen Guangliang started thinking in the office.

Obviously, banks cannot rely solely on government bonds and loans; they should explore multiple avenues of income.

The next goal, of course, is to invest in silver and convert the ocean into silver. Of course, the ocean is also silver, containing more than 70% silver.

Now the gold-silver exchange rate has reached 80, so Chen Guangliang is also arranging to exchange all the gold in his hands into silver.

At the end of the month, Chen Guangliang accompanied Kong Xiangxi and others to Chongming Island to visit his sugarcane farm.

Although Japan occupied Chongming Island, it avoided a devastating attack, effectively sparing the island. Chen Guangliang's sugarcane farm had already stored its sugarcane seeds in the cellar by the end of January and resumed planting in March and April, successfully completing its second year's planting plan.

The equipment of the "sugar-making enterprise" jointly owned by Kong Xiangxi and the Nanjing government, namely the original National Sugar Factory, was bombed by the Japanese this time.

Therefore, the Nanjing government and Kong Xiangxi wanted to build another sugar factory, and this time they naturally had to purchase sugarcane sugar-making equipment.

On the other hand, the No. 4 Sugar Refining Factory in Guangdong Province expected to produce tons of sugar during this sugar-making season, making a profit of four million yuan; in addition, Chen Jitang also smuggled more than tons, making a profit of nearly four million yuan.

It can be said that with the profits from more than half a year alone (600 million), Guangdong Province has built the remaining six factories (two of which are designed to crush 500 tons of sugarcane per day).

With such high profits, it is no wonder that Kong Xiangxi was jealous. After the Japanese left, he came to find Chen Guangliang first.

Kong Xiangxi visited the sugarcane seed garden and asked, "How many acres are there here? How much sugarcane can be harvested?"

Xu Caijin, who was in charge of the plantation, immediately said, "We've already reached 500 mu this year, and we expect to produce 3000 tons. However, these are just seedlings. After this year's harvest, we won't be able to produce sugar until next year's harvest season, and this will primarily be used for research purposes." Kong Xiangxi asked with envy, "Mr. Chen, the sugarcane used to make sugar in Guangdong Province is all imported, right? So, can we import sugarcane for our own sugar production in Shanghai?"

Chen Guangliang said, "Importing sugarcane to make sugar is a helpless move. Guangdong Province has imposed heavy taxes on Yangtang in order to develop the sugar industry. If we set up a sugar factory in Shanghai, we can certainly import sugarcane, but it is also necessary to grow sugarcane in the first place."

Kong Xiangxi said, "Then our sugarcane production and advantages are definitely not as good as those of Guangdong and Fujian. So it will be difficult for us to compete with Guangdong."

What a beautiful thought!

Guangdong Province is now the most competitive in every aspect. I am afraid that even Yangtang will not be its match next year.

"It's natural. The climate and costs are there. What's more, they already have a head start. Next year, if six factories produce sugar, Yangtang won't be a competitor."

Kong Xiangxi said directly: "Although they are all local sugars, we in Jiangsu, Zhejiang and Shanghai also support Guangdong sugar to occupy the market, but we in Shanghai cannot do without our own white sugar industry. Therefore, we have decided to build a sugar factory as quickly as possible. If Mr. Chen is interested, you can come and invest!"

There was some truth to that. In fact, Chen Guangliang was more optimistic about the Sichuan Sugar Factory. It was located in Neijiang, a sugar-producing city. If Guangdong's sugar industry was bombed, Sichuan's sugar would become a strategic commodity. Furthermore, Sichuan was also suitable for growing sugarcane, though not as conveniently as Guangdong.

Of course, Chen Guangliang just said tactfully: "That's not necessary. The sugar industry is booming now, so I won't join in the fun. It's just a sugarcane plantation. I can sell it to Minister Kong at a fair price."

"Okay, you name a price and I'll buy it right away!"

At this time, Kong Xiangxi was also determined to acquire the new sugar factory. He had already obtained the professionals who had returned from Guangdong Province, and had also opened up channels for importing machinery and sugarcane, as well as experience in factory construction. He was full of confidence.

If he had not heard Chen Guangliang say that Guangdong and Fujian were the most suitable places for growing sugarcane, he would probably have wanted to open a few factories.

Now, he knew that under such circumstances, it would be enough to open a factory that could crush 1000 tons of sugarcane a day.

At present, the price of sugar-crushing machines in the United States has been declining. You can buy a set of machinery (capable of crushing 66 tons of sugarcane per day) for $1000.

Chen Guangliang was also very straightforward. He sold the farm to the Southern Whale Industrial Department at cost plus a little interest, but he didn't make much money. After all, he hadn't invested in the sugar industry with the intention of making money.

On that day, everyone had a meal together at the Shangri-La Hotel, including Fang Jiaobo, Yu Qiaqing and others.

During the discussion, the issue of dividends from the Guangdong Province No. 1 Sugar Refinery came up, but Kong Xiangxi was not angry. After all, he knew that warlords were disobedient.

Fortunately, Guangdong Province has decided to distribute a total dividend of 7 million in early July.

This means that the Jiangsu-Zhejiang consortium can get 150 million yuan, and the remaining dividends will be distributed by the end of the year or early next year.

It basically takes two years to recover the investment, plus the first year of factory construction time.

Chen Guangliang single-handedly built China's sugar industry, not just three years ahead of schedule, but three very precious years; the sugar industry is also complementary to the alcohol industry, and alcohol can be used as aviation fuel in this era.

All of these may affect the future war situation, but the extent is the only difference.

Times Pictures successfully acquired Ren Pengnian's film company and brought Ren Pengnian and his wife Wu Lizhu under its umbrella.

Since the January 28 Incident, Shanghai's film industry has shrunk, and coupled with the anti-Japanese atmosphere across the country, people are no longer so interested in traditional martial arts films.

However, if there are GM ideas or anti-Japanese ideas, they will be rejected by the Film Censorship Committee.

Therefore, the three film giants, Mingxing Company, Lianhua Film Group, and Tianyi, are having a hard time now, not to mention that they suffered heavy losses in this war.

On the other hand, Times Pictures is thriving. Thanks to the movie "Huo Yuanjia", it accounted for one-third of the turnover of Star Company last year, and is estimated to be half of its turnover this year.

Moreover, the film "Fist of Fury" currently being produced by Time Pictures does not involve war and GM ideology, so it is 100% certain to be released.

In the conference room, Chen Guangliang was discussing "Once Upon a Time in China" with everyone. The script was written by Chen Guangliang under the name of Lu Hanzhang.

So Lu Hanzhang is not only a producer now, but also a screenwriter. Only he understands that everything comes from the boss's hand, and he just doesn't want fame.

"What a great script! This script combines elements of martial arts, country, and nation. It will surely be a big hit at the box office!" Ren Pengnian stood up excitedly.

Lu Hanzhang smiled and said, "Director Peng will be in charge of this movie. The company will fully support you."

Ren Pengnian nodded and said, "Okay, I should learn from the company. After all, 'Huo Yuanjia' refreshed the style of 'The Burning of the Red Lotus Temple'. We used to focus too much on special effects, and now not only have we been banned by Nanjing, but we've also started to be disliked by the audience. Real kung fu, fighting with every move, is what makes a good martial arts film. No, it's called a kung fu film."

Next, Chen Guangliang said, "For the female lead, 'Thirteenth Aunt', we need to choose a beautiful actress. I think Jiang Meiying, who starred in cigarette commercials, would be a good fit. You can invite her to audition. If she has a company, you can also second her to us."

Ren Pengnian originally wanted to say that his wife was capable of doing the job, but then he thought, how could her judgment be wrong!
"Okay, I'll have someone contact you later."

After discussing the movie for a while, the meeting ended.

This year, Times Pictures intends to go against the trend and expand its asset value to 200 million in one fell swoop.

In this way, I can consider developing in Hong Kong next year.

After the meeting, Lu Hanzhang came to report, "Boss, if there are only three movies this year, isn't that too few? How about we shoot one or two more movies with different styles? After all, Times Cinema can't always show three movies."

Chen Guangliang said, "We'll reconsider after 'Fist of Fury' is released. After all, if a movie doesn't make money, it's better not to make it. Remember, we only make movies that make money. If we have political ideas, we won't be able to survive in the long run. Although our movies do have ethnicity and national identity, they don't touch on politics."

Lu Hanzhang nodded and said, "I understand what you mean!"

After all, the boss is a businessman who entered this industry and doesn't want to get into trouble, that's all.

(End of this chapter)