A century-old wealthy family that rose from Shanghai

In view of the huge fluctuations in silver prices in April, the Shanghai Gold Exchange once again implemented the "monthly delivery" method to facilitate the organization of active trading volume.

In particular, the Changjiang Money House once again made a lot of profit, which also caused a great shock in the circle. After all, Chen Guangliang has always been a "barometer".

In fact, the reason why speculators in the Shanghai gold market regard Chen Guangliang as a "barometer" is not because Chen Guangliang "wins more and loses less", but because Chen Guangliang used public opinion as a means to make everyone admire him deeply.

Chen Guangliang himself is a very influential newspaper writer, and his influence in the economic and business fields is currently unmatched by anyone.

Fortunately, at the beginning of May, the short selling force of Changjiang Money House suddenly halved, which also made the market calm down a little.

Gold Exchange.

"Over the past two days, Changjiang Bank seems unsure whether silver prices will continue to rise, and has reduced its selling pressure!"

"It's common for Changjiang Bank to speculate in gold, often only taking advantage of a short market trend and then essentially quitting. This year, they re-entered the market in February and by the end of April had made a profit of one million (2 yuan). Who could have such a trick?"

"It's normal for the Changjiang Bank to make money. Mr. Chen had already calculated that the US dollar would depreciate and the silver dollar would rebound. Now that the Changjiang Bank is continuing to sell short, it shows that from a long-term perspective, silver still has potential to rise. It all depends on whether gold will rise!"

Speculators who are familiar with the style of the Changjiang Bank are also discussing it at this time.

The recent "United States abolishing the gold standard" has become well known to everyone, and anyone who knows a little about economics knows that the situation of "the United States abolishing the gold standard" and "the United Kingdom abolishing the gold standard in September 1931" is exactly the same, so the subsequent trend can naturally be predicted.

The current depreciation of the US dollar is not high, with a depreciation of about 10% against European currencies and about 15-20% against silver standard countries.

But whether it will depreciate further requires everyone's predictive ability!

The repayment costs for the US$580 million loan that China Merchants Group and Chen Guangliang personally took from Citibank naturally plummeted; however, Citibank did not care about this as it was a "dollar-based" bank after all.

Here.

After Chen Guangliang made another profit of 250 yuan from the Changjiang Money House, he no longer paid attention to the speculation of the benchmark gold; moreover, he had asked Hu Jinshun and Wu Xinhe to withdraw half of the margin, and only use million yuan for the operation.

He can certainly be sure that international silver will rise slightly during the period from May to September, probably from 5 cents per ounce to more than 9 cents, which is equivalent to a 35% increase.

But will gold prices continue to rise during this period, or will the gold-silver exchange rate only rise slightly?
Because I am not sure about the increase, I simply reduce the amount.

Starting in October, Chen Guangliang will restore the credit limit of the Changjiang Money House to 10 million, because the international silver price may rise to 500 cents at the end of the year, which will be a surge.

This is Chen Guangliang's operating idea. With this operating method, he is not afraid of others targeting him and then uniting to fight against him.

First, he is on the side of the general trend; second, Cheng is the core figure of the Ningbo Gang; third, he still controls public opinion; fourth, Chen Guangliang has always been elegant when eating.

On this day, Chen Guangliang came to Nanjing and reported his work in person to Song Zaiwen from the Ministry of Finance and Zhu Jiahua from the Ministry of Transportation.

After seven months of "reform", China Merchants Group's operations and financial situation have been completely transformed; Chen Guangliang boldly predicted that China Merchants Group's profit this year will reach 300 million, and the pressure to repay debts will be sharply reduced by 30% (equivalent to a 30% depreciation of the US dollar).

Song Zaiwen said happily, "It seems that the candidate for the general manager of China Merchants Group that I selected through 'three visits to the thatched cottage' was a very correct choice!"

There was no such thing as three visits to the thatched cottage. It was obvious that Yu Qiaqing was directly entrusted to act as a lobbyist, and the second time he had a "semi-threatening" attitude.

Of course, Chen Guangliang still has a good impression of Song Zaiwen, and now Song Zaiwen can be regarded as Chen Guangliang's backer.

Just thinking about the fact that Song Zaiwen will step down in October this year, Chen Guangliang also feels that as the general manager of China Merchants Group, he should consider retiring at that time and not get involved in official affairs anymore.

Zhu Jiahua also said: "The work of China Merchants Group not only concerns a state-owned enterprise with assets of 30 to 40 million, but also the development of my country's shipping industry. It is of vital importance."

See this.

Chen Guangliang took the opportunity to propose: "Minister Song, Minister Zhu, I want to have China Merchants Steam Navigation Company build two new 3000-ton ships in the UK and enter China's ocean-going business, opening international routes to Manila and Sing Tao Island. These South China Sea routes have always been controlled by countries such as the United States, Britain, and Japan, but the main passengers are us Chinese."

At that time, China Merchants Group had not yet opened routes to Southeast Asia, Europe and the United States, which undoubtedly made Chen Guangliang feel like doing something.

Song Zaiwen immediately supported him, saying, "As the general manager of China Merchants Group, you have the initiative and decision-making power in matters like this. We fully support you. However, are you planning to use your silver deposits for the funds?"

Don't employ people you doubt, and trust people you employ. This is his style of doing things.

Chen Guangliang immediately said, "The US dollar is now in the same position as the British pound in September 1931. A continued rise in silver prices is a major trend. Unless absolutely necessary, those silver and ocean deposits cannot be used. They will be used to repay US dollar debts. Therefore, I would like to talk to HSBC and invite them to provide loans for the two new ships."

Zhu Jiahua also took the opportunity to echo, "British shipbuilding is currently at a low point, and the cost of building new ships should be able to generate a lot of money. If we want to develop the South China Sea route, we can indeed make plans early."

The two supported it, firstly because the operation and financial situation of China Merchants Group had improved, and secondly because the debt was 400 million US dollars, which meant they would have to pay back 60 US dollars less.

Finally, Song Zaiwen said with great satisfaction and determination, "Okay, Minister Zhu and I will fully support you in these matters. Just go ahead and do it."

He expects Chen Guangliang to build China Merchants Group into a "decent state-owned enterprise", which will be the best enterprise of the Nanjing government besides banks.

After Chen Guangliang finished, Song Zaiwen asked Zhu Jiahua to leave first, and he started talking with Chen Guangliang again.

Then, Song Zaiwen asked: "How much room do you think there is for silver to rise?"

Last year, at the suggestion of Chen Guangliang, Song Zaiwen ordered several "state-owned banks" to import silver, using gold, foreign exchange, or materials, and finally imported 80 million taels of silver.

Now, the 8000% increase in the value of these 20 million pieces of silver has brought the country considerable profits.

Of course, the rise in silver prices will naturally lead to a disaster for the entire China, but since it is unavoidable, we should seek to maximize our benefits.

Chen Guangliang shook his head and said, "I'm not sure, but I should have an answer within a year!"

What this means is that it depends on how the US dollar moves and how the US government acts.

Song Zaiwen nodded and didn't ask any more questions. After all, Chen Guangliang was not a god. He was already a genius for being able to analyze something useful!
Chen Guangliang stood up and said goodbye!

T.V. Soong even walked him to the door to show his encouragement for Chen Guangliang's contribution.

In fact, Chen Guangliang did not have any business that needed the support of the Nanjing government. His core business was basically within the concession, and he was not afraid of being dealt with by the Nanjing government.

But in the past two years, Chen Guangliang worked for Nanjing mainly because he considered that Chongqing would be one of his places of residence in the future, and it was necessary to establish good relations.

Although it was inevitable that the South Whale government would exploit some of his industrial assets, at least he and his family's lives would not be taken away. Moreover, the South Whale government's methods of exploitation would at least be more refined.
Chen Guangliang found some time to meet with Stephen, the head of HSBC, in Shanghai. He first proposed, in the name of the general manager of China Merchants Group, that he hope to borrow money to build two ocean-going ships in the UK.

Stephen naturally knew that the debt pressure of China Merchants Group had been greatly reduced, but he still asked cautiously: "What are you going to use as collateral?"

This time, Chen Guangliang said confidently: "These two ships are used as collateral."

A typical case of getting something for nothing.

But this is nothing out of the ordinary for HSBC, and "chain loans" are also a method that HSBC is quite familiar with.

As expected, Stephen's first reaction wasn't to find it absurd. Instead, he said, "China Merchants just bought four second-hand cargo ships and is now building two more. Could it be that they're planning to continue developing coastal transportation?"

Chen Guangliang said frankly: "It is the development of ocean shipping to Southeast Asia."

Stephen was stunned, thinking that the development of China Merchants Group was too radical. However, when he saw Chen Guangliang's young face, he also understood that the kind of person at the helm determines the kind of company.

However, he quickly said, "We're a bank, not concerned with shipping competition. Since China Merchants' business performance has improved, and with Mr. Chen as its general manager, I'll take the initiative and agree to this loan. We'll pay the funds directly to the British shipyard you value. How about that?"

If the money does not go through the China Merchants Steam Navigation Company’s account, it means that it can only choose a British shipyard.

"OK, no problem!"

I was originally planning to choose a British shipyard. At this time, British shipyards and shipping industries are still among the best in the world.

Next.

Stephen took the initiative to ask, "Mr. Chen, last time you said you wanted to transport a batch of silver to Hong Kong for storage?"

Chen Guangliang immediately said, "I have asked Ping An Bank to arrange it. The total amount is 300 million taels of silver."

"Okay, I'll arrange for reliable management personnel to connect with you."

"Thank you very much"

Because the funds were transported to Hong Kong and then stored in a rented vault at HSBC, there was naturally no possibility that HSBC could embezzle them.

Stephen was concerned about this matter and just wanted to find out more about it. Besides, HSBC has no shortage of silver and is also very reputable.

You can say he is bad, but you can't say he has no credibility.

After returning to Ping An Bank, Chen Guangliang convened several core management members to discuss matters.

Including Manager Xia Gaoxiang, Assistant Manager Ye Ximing, Qin Bohou from the Savings Department, Wang Yaxin from the Project Department and others, all went to the conference room.

These management members are all "founding veterans", but Chen Guangliang has not forgotten to train new people, including Zhang Shunian (son of Zhang Yuanji), who was seconded to China Merchants Group and has been promoted to the "deputy manager" level of management.

“How’s the bond market doing?”

Xia Gaoxiang immediately said, "Since this time last year, except for 'Tariff Coupons' and 'Six-Yuan', everything else has increased by around 10 yuan, a jump of over 170%. Our investments, excluding 'Tariff Coupons' and 'Six-Yuan', have also seen a natural increase of over %, and our book profit is approaching million yuan."

Based on the 1800 million yuan deposit in Ping An Bank, the annual interest expenditure is only about 600 to 10 yuan; in fact, the interest on the 15 million yuan loan (-%) is enough to balance the expenses and pay for personnel expenses.

In other words, a loan-to-deposit ratio of around 30% can support the bank's normal expenses.

The profit generated by Ping An Bank's investment in 500 million government bonds is naturally the bank's source of profit.

Since banks are prone to "bad debts" and "doubtful debts", they will invest in "risky investments" such as real estate and government bonds to obtain higher profits and to hedge against risks.

Chen Guangliang said with satisfaction, "Continue to hold it until the end of the year. The income from the government bonds is more than enough to invest in our headquarters building in Hong Kong."

Xia Gaoxiang nodded and continued, "Due to the continued improvement in the government bond market, Ping An Bank no longer relies on your silver as a backing."

Government bonds are inherently easy to cash out, which is why Ping An Bank's loan-to-deposit ratio is only around 35%, making it a very healthy bank. This assumes, of course, that investments in government bonds have already yielded profits.

Chen Guangliang said, "It just so happens that the silver I deposited with Ping An Bank will now be 'deposited' in Ping An Bank, with interest calculated based on current accounts. At the same time, this silver will be shipped to Hong Kong in batches and stored in a vault rented from HSBC until our building and vault are completed."

Everyone understands that the boss attaches great importance to the development of Hong Kong, so there is nothing strange about this.

Xia Gaoxiang then asked, "It's probably difficult to expand business in Hong Kong, as the majority of people there are Cantonese."

Chen Guangliang then said, "Don't rush this, let's take it one step at a time. There are two areas worth planning ahead of time. The first is the exchange rate relationship between Shanghai, Wuhan, Guangzhou, and Hong Kong. The Japanese are still determined to destroy China, so Hong Kong will sooner or later become a refuge. Capital will then shift to the Shanghai concessions and Hong Kong, so it's essential to organize these four-corner relationships in advance. Secondly, overseas Chinese like to remit money to the mainland through Hong Kong, and this is also a business we can pursue. In short, everything is difficult at the beginning, and I hope everyone will firmly adhere to the general direction of our system's development."

"Yes, boss"

Through a few things, everyone has a clear understanding of the boss's strength.

Ping An Bank’s current development is entirely due to the boss’s connections and grasp of the overall direction.

In terms of connections, with the help of Chen Guangliang, the factory owners in Shanghai avoided losses of 50 to 60 million yuan, which brought nearly 5 million yuan in deposits and a large amount of business to Ping An Bank. In addition, Chen Guangliang's influence also made many retail investors choose Ping An Bank for savings.

The general direction is naturally in the area of ​​government bond investment.

Afterwards, Chen Guangliang arranged for the person responsible for transporting 300 million taels of silver. Although HSBC was responsible for the transportation, Ping An Bank would also be responsible for the relevant procedures.

After the meeting.

Chen Guangliang was thinking in his office:

Ping An Bank's development is estimated to be at its current level. It is a leader among medium-sized banks, and there is a big gap between it and large banks (state-owned banks, the four major banks in the north, and the three major banks in the south).

It would be great if the savings could double to 20 or 30 million!
But Ping An Bank's profits are not low. Chen Guangliang estimates that the income from government bonds alone this year will be around 300 million.

With this profit, Ping An Bank’s capital can reach 500 million!

Increasing bank capital is conducive to the expansion of bank size and the improvement of bank credibility. (End of this chapter)