A century-old wealthy family that rose from Shanghai

Time flies, and 5 months have passed in the blink of an eye.

End of March 1933.

No. 9 The Bund, China Merchants Building.

Guo Deming from the China Merchants Group Secretariat hurried to the general manager's office and said, "Boss, Song Zaiwen has resigned as Minister of Finance!"

Chen Guangliang immediately put down his work and said, "Is the news true?"

Guo Deming nodded and said, "According to the news from the Southern Whale side, the Central Standing Committee will probably make a decision in the next two days."

Having followed the boss for so long, he understood that the boss did not want to be involved in the vortex of "official-business" relationship, and the boss's backer in Nanjing was Song Zaiwen. Once he stepped down, the boss would probably want to quit.

After some thought, Chen Guangliang said, "TV is anti-Japanese and pro-American. The Commander-in-Chief and Wang Jingwei are more inclined to cooperate with Japan. Plus, TV has always wanted to improve the economy and opposes increasing military spending to 'suppress' the rebellion. It seems there's a conflict between the two. I'm afraid Song Zaiwen is destined to step down from the Ministry of Finance this time."

Guo Deming immediately said, "Boss, it's time to retire. With silver prices now up 400% and the dollar down % (relative to gold), China Merchants' debt has effectively been cut in half. Add to that the million taels of silver deposited as part of last year's Boxer Indemnity, and China Merchants will be able to pay off its debts by the beginning of next year in just two years."

如今，白银已经涨至每盎司44美分左右（1盎司28.35克），华夏每两相当于48美分（一两31.5克）。

China Merchants Group owes Citibank US$400 million in principal and two years' interest of approximately US$65.

This means that 1000 million taels of silver are enough to pay off the debt (1400 million taels of silver), which is equivalent to paying back 600 million taels of silver.

at the same time.

The China Merchants Steam Navigation Company had a sum of returned "Boxer Indemnity", which was converted into 400 million taels of silver by Chen Guangliang at the beginning of the year; this year's profit was more than 300 million taels of silver, totaling more than 210 million taels of silver.

This means that at the current price of silver, if the China Merchants Steam Navigation Company uses this year's deposits to repay its debts, then next year's debt will only be 400 million taels of silver, or 600 million taels of silver.

China Merchants Group can repay such debt normally in just two years.

Chen Guangliang said, "I'm afraid the price of silver will rise to over 50 cents per ounce. China Merchants' debt is no longer a burden, and we still have the strength to expand further. Also, while I have no desire to cling to the position of General Manager of China Merchants, it would be too obvious if I resigned as soon as TV left. Furthermore, Zhu Jiahua is still the Minister of Transportation, so with him looking after us, there's nothing to worry about. We'll make a decision next year!"

Silver will continue to rise, so there is no need to rush to repay the debt.

Guo Deming hesitated for a moment, then said, "Boss, I want to study abroad!"

He saw that his former colleague Lu Yuantai was going to the United States to study in the second half of this year, so he also came up with the idea.

After all, he is just a domestic college student and is somewhat disadvantaged in terms of academic qualifications.

Although he now has the trust of his boss, he is in an awkward position at work. Changjiang Real Estate has already suspended investment, and it itself is full of talented people. He wants to work for Ping An Bank, but he feels that he would be at a disadvantage because he has not studied abroad.

Chen Guangliang said, "Okay, you should prepare yourself. You will be going abroad to study next year. The expenses will be paid by Changjiang Real Estate, and the company will also take care of your family."

Guo Deming quickly said, "I've made quite a bit of money following the boss over the years, and I have enough money to pay for my study abroad."

Chen Guangliang waved his hand and said, "You all have families, so your expenses are naturally high. Moreover, overseas consumption is different from domestic consumption, so expenses are higher. Don't worry, the company will sponsor your study abroad. This is not a contract to sell yourselves, but because the company has made a lot of money over the years and you have made great contributions."

Guo Deming replied: "After returning from studying abroad, I naturally hope to continue working with my boss.

"Well, during this time, you should focus more on preparing and paying attention to studying abroad."

"Ok"

It's a good thing to be ambitious.

Chen Guangliang has always been attracting new talents to join his business, while also not forgetting the old servants who built the business with him.

After Guo Deming left, Chen Guangliang stood up from his office, stood in front of the window, and looked at the busy scene of the Huangpu River, feeling a sense of pride in his heart.

China Merchants Steam Navigation Company will have normal development next year (1934). Not only will its financial situation improve, but its business will also be booming. In addition, China Merchants Steam Navigation Company will open regular flights to the Philippines and Singapore Island next year, marking its first step into ocean shipping.

Perhaps, before 1937, we could have taken the step of transoceanic shipping, that is, opened a fixed shipping route to the United States.

Of course, Chen Guangliang's mission is expected to end in the first half of next year, and it's time for him to get busy with his own affairs.

Two days later, it was reported that Song Zaiwen had resigned as Minister of Finance. Although his successor had not yet been announced, Chen Guangliang already knew that it was Kong Xiangxi.

Kong Xiangxi's ability was not as good as Song Zaiwen's, but he was better in that he absolutely obeyed the commander-in-chief.

When it comes to private enterprises, Song Zaiwen still has some "principles", but Kong Xiangxi can be said to be unscrupulous. Of course, the two have the same general principles, and even Kong Xiangxi's main policy plan is a continuation of Song Zaiwen's.

Ping An Bank Building.

Chen Guangliang has a comprehensive office here, and executives of various companies under his company who work in Ping An Building all report to him here.

Xia Gaoxiang and Ye Ximing from Ping An Bank came to his office.

Chen Guangliang then said, "Sort out the government bonds and cash out 40% of the most profitable ones."

Ye Ximing immediately replied, "The most profitable ones are the military reduction coupons and the seven-year coupons, both of which have a profit rate of over 6%. Based on an investment of 200 million, if you cash out, you'll make a profit of over 120 million, not counting the interest income during the period."

Xia Gaoxiang also added: "With this profit of over 120 million, the investment in the headquarters building in Hong Kong has been made up."

The building in Hong Kong, with a total investment of 100 million, is more expensive than that in Shanghai, mainly because of its larger land area and building area.

Ping An Bank initially invested a total of 500 million in government bonds. In less than two years (currently just over a year and a half), its book profit has reached nearly 300 million.

Chen Guangliang decided to cash out 40% at this time, also considering whether Kong Xiangxi's coming to power would have an impact on bonds in the short term.

Because of uncertainty, I decided to bag them in batches.

"Well, the rest have to be sold by the end of the year and early next year."

In fact, it was estimated that it could rise until June 1934, but Chen Guangliang did not want to take the risk.

Ye Ximing immediately suggested, "But this way, our loan-to-deposit ratio will drop significantly, to just over 30%, and our income will have to come solely from loan interest. We could keep some government bonds; even if they don't increase in value, we can still earn a bit of interest. Or we could invest in real estate and earn a bit of rental income. Our Ping An Bank's deposits have already exceeded 2000 million. If we're too conservative, it'll be hard to grow!"

Chen Guangliang said seriously, "The Ping An Bank Building, the Hong Kong Ping An Bank Building—aren't these all investments? Furthermore, the US is determined to drive up the price of silver. Then silver from the Shanghai Stock Exchange will flow to the US, and the Shanghai Stock Exchange will be in a panic. Real estate prices will plummet, and banks will be squeezed. At this point, what do you think is more important, development or preserving strength?"

Ye Ximing and Xia Gaoxiang were shocked. The boss's few casual words analyzed the future situation so accurately that it made them feel a chill down their spines.

Xia Gaoxiang immediately said: "The profit from this government bond is already the profit of many banks for several years. We should indeed operate conservatively. The Ping An Bank Building in Shanghai and the Ping An Bank Building in Hong Kong can both collect real estate rents, which is also one of Ping An Bank's businesses." Ye Ximingye nodded.

Chen Guangliang then said, "But there's no need to be nervous. Where there are crises, there are naturally opportunities. We will continue to invest in real estate in the future, but we want the price to be ideal."

The Shanghai real estate market is expected to plummet next year, and Ping An Bank could use the deposits of a small number of depositors to buy up some villas at bargain prices for rental purposes. Since this is depositors' money, it's impossible to transfer it to Hong Kong or the United States, so investing in some real estate is essential.

Xia Gaoxiang added, "We also need to tighten monetary policy and exercise caution in lending. After all, if the Shanghai market truly is short of money, not only will our banks be at risk of a bank run, but even industry will be impacted."

Chen Guangliang nodded and said, "That's natural. In any case, it shouldn't exceed 33%."

"it is good"

With Chen Guangliang's analysis of the overall situation, Ping An Bank will be able to move forward more smoothly.

Even if Kong Xiangxi was interested in his Ping An Bank, he would not have the opportunity to get involved, because in addition to the very low "loan-to-deposit ratio" of Ping An Bank, it was also guaranteed by a sum of silver from Chen Guangliang (the one purchased with US dollars borrowed from Citibank).

Then, Chen Guangliang said: "Also, we plan to increase Ping An Bank's registered capital to 200 million."

The original registered capital was 100 million, and increasing it to 200 million will also increase influence and credibility.

In fact, if the government bonds were sold, Ping An Bank's capital would have reached over 400 million yuan, which meant that the original investors had quadrupled their principal in two years.

"Okay, we'll prepare the relevant regulations as soon as possible and apply to the Ministry of Finance."

After making some arrangements, Chen Guangliang felt more at ease.

Ping An Bank's deposit of 2000 million has already put it among the large banks. Although it is still slightly lower than the four northern banks and the three southern banks, it is much better than some old and well-known banks.

The reason why there are so many deposits is, first, Chen Guangliang’s credibility, second, Chen Guangliang’s corporate cooperation, and third, Chen Guangliang’s close relationship with the Shanghai business community.

But if you want to keep this foundation, you have to take some precautions in advance.

of course.

There is no need to be too nervous. Flies don't bite seamless eggs. Ping An Bank has done everything right.

First, after cashing out the government bonds, the bank's own cash flow (excluding deposits) was more than two million yuan;

Second, the loan-to-deposit ratio will fall below 33%, and banks will have a large amount of cash flow (i.e. deposits).

Third, Chen Guangliang borrowed US dollars from Citibank to buy silver. Even after paying off the debt, it is estimated that there will still be more than 300 million taels of silver, equivalent to about 500 million oceans.

In fact, the loan ratio can be increased, after all, there is sufficient "backing", but Chen Guangliang is worried about bad debts in the next two years, so he asked his subordinates to be strict and cautious in lending.

In the evening, Hu Jinshun and Wu Xinhe came to Chen Guangliang's office.

"Boss, the October delivery is over, and we've made some profit again. This year, our total profit has reached 10 million yuan."

It exceeded expectations. After all, after making a profit of 90 oceans, the quota was halved; and although silver rose from more than 30 cents to more than 40 cents an ounce, gold was also rising.

In fact, after the United States abolished the gold standard, it not only raised the price of silver, but also purchased gold, and even did not allow private individuals to hold gold, which indirectly pushed up the price of gold.

It’s just that relatively speaking, silver has risen faster.

China is on the "silver standard", so the gold standard has naturally been falling this year.

Chen Guangliang made a decisive move and said, "Starting from November, we will do the final wave. The quota will increase to 11 million, and we will still be short selling. After this wave, we will stop here."

Although silver prices will continue to rise next year, that price is the price 'to the United States'.

Next year's silver price will be different in New York, London, and Shanghai. Because the US government has significantly raised the price of silver, foreign companies and merchants in Shanghai have been pulling Chinese silver to the US to reap the high profits.

Of course, the silver in the foreign companies also belonged to them, even though they were plundering China’s wealth.

Hu Jinshun replied: "Okay, we will increase the margin immediately."

There are some reasons why Hu Jinshun was able to make 120 million this time. His operation method was not simply short selling at the beginning of the month and settling at the end of the month. He would have made some operations in the middle, although the basic situation did not change.

After the two left, Chen Guangliang stretched his waist.

In recent years, the expansion of his business has slowed down, but he is making money very quickly.

But in fact, what Chen Guangliang is worried about now is not making money, but how to spread his assets and form a pattern of "not putting all his eggs in one basket".

On the other hand, Chen Guangliang now also requires himself to make money steadily. After all, life is long and he has plenty of opportunities.

After get off work, Chen Guangliang went to the Cathay Hotel and made an appointment to have dinner with Jiang Meiying.

After dinner, the two prepared to go to the "secret base" to spend the night together.

However, Chen Guangliang did not notice that he and Jiang Meiying were discovered getting into the car together by an acquaintance.

Kong Lingyi gritted her teeth and said, "Was that Chen Guangliang just now?"

Zhang Hanfen said affirmatively, "Of course, I've seen his motorcade. I didn't expect that Chen Guangliang, who always boasted of being loyal, actually had another woman by his side. And that woman seemed to be a celebrity. What was her name?"

Kong Lingyi said: "Jiang Meiying is the leading actress of Times Pictures."

Since Yan Renmei got married and had children, it was naturally rare for her to get together with Kong Lingyi alone. So today, Kong Lingyi and Zhang Hanfen met at the Chinachem Hotel, and unexpectedly saw Chen Guangliang's "affair".

Zhang Hanfen hesitated for a moment and said, "Lingyi, why don't you keep it a secret for your brother-in-law? After all, they have a good relationship and your brother-in-law treats us very well."

"Bah!" Kong Lingyi said angrily, "What brother-in-law? He's such a bad role model. Having such an excellent wife like Renmei isn't enough for him. He actually went out to find an actress!"

In the past, she had always had a good impression of Chen Guangliang, and even said that if she had a choice, she would marry someone like Chen Guangliang.

But now, Chen Guangliang is having an affair with other women, which makes her feel very bad.

Zhang Hanfen remained silent. She could actually accept this kind of thing very quickly because her father, Zhang Shouyong (Deputy Minister of Finance), had several wives and gave birth to six sons and ten daughters.

On the other hand, Chen Guangliang has always been very generous and gentlemanly to his classmates. Even when it comes to the Shangri-La Hotel bill, Chen Guangliang sometimes settles the bill for them. As the saying goes, "A man's mouth is soft when he eats!" (End of this chapter)