A century-old wealthy family that rose from Shanghai

On the first day after New Year's Day, Chen Guangliang arrived at the Ping An Bank Building, which essentially became his base of operations. Although Chen Guangliang had spent considerable time working at The Bund 9 over the past year, he was still working for the state, and he didn't reap any benefits.

On the contrary, in the Ping An Bank Building, many of Chen Guangliang’s instructions were issued from here, and then a lot of wealth was gathered here.

"boss"

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

Chen Guangliang put down his work and immediately made arrangements: "Cash out the remaining bonds in the next two months. Don't keep any!"

"Ok"

40% has been cashed out before, and now 60% remains (calculated based on the investment amount).

After nearly two years of investment (starting after the January 500 Incident), Ping An Bank has invested 400 million yuan in the purchase and now has a profit of million yuan (including interest income).

The annual interest on a loan of 500 million is only about to yuan.

So, investing in government bonds was very successful this time.

Then, Xia Gaoxiang suggested: "Boss, Ping An Bank can also get involved in the insurance industry. After all, we have become a large bank now."

Ping An Bank's current asset value is between 400 and 500 million yuan, and its deposits have exceeded 2000 million yuan. It has become a large bank in just over two years, which is truly legendary.

Chen Guangliang pondered for a moment, then said, "It's just that insurance in this era carries a high risk of war. If you invest rashly, you might not be able to make a profit!"

Xia Gaoxiang immediately said, "The initial capital can be smaller, and we can cooperate with others to hold a majority stake. In addition, the insurance business can also be distributed. We can distribute the insurance business of some foreign companies and still make a profit."

Chen Guangliang understood because some of the Chinese insurance companies he was familiar with were like this. In fact, British insurance companies were the most popular, followed by American and French insurance companies.

For example, a ship that does global shipping cannot insure itself with its own insurance company and can only seek insurance from a large British insurance company.

"Okay, we'll have a meeting later to discuss this. Also, I plan to merge Changjiang Money House into Ping An Bank, creating a new company called Ping An Securities. Its business will include brokerage of government bonds, stocks, and gold."

The four major financial businesses, commercial banking, investment banking, insurance and securities, can also start to take off.

"Okay, let's discuss the specific plan together later."

After a brief communication, Chen Guangliang decided to give everyone two weeks to prepare before holding a meeting to discuss.

After the Changjiang Money House was merged into Ping An Bank, Ping An Bank and Chen Guangliang's other companies formed a large trust group, which can be called a consortium.

On this day, Chen Guangliang received Sun Chunsheng from Jinxing Business Company in his office.

Sun Chunsheng was the second most popular Chinese real estate developer after Chen Guangliang in the past few years because he was the fastest to follow the trend. After Chen Guangliang invented the "land leasing and construction on behalf of others" model, he started almost three months later. After Chen Guangliang invented the "stratification and installment" model, Sun Chunsheng sold his first property in less than half a year.

Therefore, Sun Chunsheng, who had a net worth of only four million in his previous life, is probably worth seven or eight million in this life.

Currently, the total value of real estate assets (land, properties, etc.) in the entire Shanghai Stock Exchange is 30 billion, which has doubled compared to a few years ago.

Sun Chunsheng got straight to the point: "Mr. Chen, I'm very interested in the fifty Western-style buildings on Xiafei Road owned by Changjiang Real Estate. Manager Lin and I have discussed the price, and we're almost at an agreement. On a separate note, I'm looking for a loan from Ping An Bank!"

He knew Chen Guangliang and knew that he didn't like rental properties. After developing so many villas, he didn't have many left.

Unlike Chen Guangliang, although Sun Chunsheng also sold some villas, he has more rental properties, many of which he only rents out and does not sell, because this is the only way to make long-term profits.

Chen Guangliang asked, "What are you using as collateral?"

The two men were not close friends, and of course when it came to such a large loan, collateral was very important.

Sun Chunsheng immediately said, "I can provide a little over 20% of the funds, and I plan to borrow the rest. If Ping An Bank can provide a loan for the remaining 80% for three years, I will use the ownership of these 50 houses as collateral."

Chen Guangliang said without thinking: "At least 30%, and I can consider lending you the remaining 70%!"

Since he knew that Sun Chunsheng was going to go bankrupt, he naturally asked for an additional 10% for the down payment, so that Sun Chunsheng would not lose out even if he went bankrupt.

In fact, someone had expressed great interest in advance, namely Zhejiang Industrial Bank.

Next, it depends on who has better conditions and we will sell it to them.

In fact, if the conditions of Zhejiang Industrial Bank were better, Chen Guangliang would naturally prefer this company. At least even if they bought it at a high price, they would not suffer losses or go bankrupt. On the contrary, if Sun Chunsheng took over this property, he would probably still not be able to avoid the fate of bankruptcy.

In fact, Sun Chunsheng's debt situation at this time was not bad. After all, he sold some buildings in layers and installments, so his financial situation was actually good at this time.

Here.

Seeing Chen Guangliang's resolute attitude, Sun Chunsheng knew that such a property would be highly sought after. Perhaps some banks would even allow people to purchase it without even taking out a loan.

He then said aggressively, "No problem, a 30% down payment is fine. How much?"

Chen Guangliang said, "The price is 260 million. You're not the only one who wants it at this price."

Simple and clear, I should have talked to Lin Hongying about it, but the price is indeed worth it.

These fifty villas on Xiafei Road are not only located in a prime location, but also feature high-quality materials, making them naturally valuable. As for the rental rate, they are almost always fully rented. (Chen Guangliang bought a property for Jiang Meiying, worth 10 yuan, with a beautiful garden.)

"Okay, I'll give you an answer as soon as possible."

"Well, it's a big deal like this, so I should consider it carefully."

"Thank you very much"

Sun Chunsheng didn't think much about it. His mind was now full of wanting to be the "real real estate tycoon".

Although he is considered a relatively well-known real estate developer in the Shanghai Stock Exchange, he is a joke to many real estate families.

When Cheng Linsheng went bankrupt, his property was worth 2000 million (the foreign company increased the mortgaged property by 30%, which means that the property was worth that price).

There is also the Zhou Xiangyun family, which ranks fifth on the list of taxpayers of the International Settlement Municipal Council. Its property assets amount to more than 23 million. The "Zhou Family Garden" on Huashan Road alone is as much as acres, and this is just the place where people recuperate.

So Sun Chunsheng's idea was simple: to leave a huge "rent-collecting kingdom" to his descendants. Although his debt was high at the moment, the current concession real estate boom meant that as long as prices continued to rise, he would be fine.

After Sun Chunsheng left, Chen Guangliang called Xia Gaoxiang and Ye Ximing and mentioned Sun Chunsheng's loan.

The two looked at Chen Guangliang strangely, as if to say, "Boss, is this a trap you set for them?"

Ye Ximing further stated, "Sun Chunsheng generally has a good relationship with banks. He can mobilize over two million yuan in funds from banks in the Shanghai Stock Exchange. However, his development relies entirely on loans, which have huge interest expenses. The rent alone is barely enough to cover his expenses, so he can only keep betting on rising real estate prices."

Xia Gaoxiang also said, "Giving a 70% loan for these fifty houses is in line with the most prudent real estate lending practices, which is how most foreign banks operate. Our Chinese banks and money houses always prefer credit loans, which is actually irrational. Of course, everyone is also trying to attract customers."

If Ping An Bank does not invest in government bonds, it will be eager to lend money to reputable and capable businessmen. In this way, there will inevitably be an element of credit loans.

But Ping An Bank is not pursuing loan business now, and it will not exceed one-third; moreover, Chen Guangliang's network of relationships and approvals are also a crucial link.

Chen Guangliang said, "Originally, I wanted to sell it to Industrial Bank, but Sun Chunsheng was more sincere, so naturally I had to sell it to him. With a 70% mortgage, Ping An Bank won't lose money."

"Ok"

The two men then left. In reality, Xia Gaoxiang and Ye Ximing, as Chen Guangliang's right-hand men at the bank, were also aware of their boss's analysis—the United States was raising silver prices frequently. If the United States were to purchase silver globally, the Shanghai market would see a silver outflow, followed by a cash shortage and ultimately, business ruin.

Chen Guangliang did have his own idea - if Sun Chunsheng really went bankrupt, then Ping An Bank would take over the 200 buildings, and the purchase cost would be less than million yuan.

Assuming rent collection began in 1935, it could have been collected until the end of 1941. Furthermore, even if the Japanese occupied Shanghai, they could not have confiscated all the properties, and perhaps this could have been avoided.

As for when Ping An Bank sold these properties, it must have been between 1946 and 1947, which was definitely in time.

Shortly after New Year's Day, the Shanghai Gold Exchange experienced unusual activity, dramatically changing the landscape of Shanghai's gold trading. For several days, the exchange was bustling with activity, and trading was frenzied, with everyone eager to capitalize on the opportunity.

Obviously, this was a setup by the Seven Stars Company. They deliberately carried out a large number of buying and selling transactions to give people the impression that gold futures were a good place to make money, thereby attracting a large number of speculators to join.

By mid-January, seeing the opportunity ripe, Seven Stars immediately launched a series of short selling on the Shanghai Stock Exchange. The price of gold in the Shanghai market plummeted again and again, with the magnitude of the decline rarely seen in years, and the impact was so widespread that it even affected the financial markets.

Hu Jinshun arrived at Chen Guangliang's office, reported back, and then inquired, "Boss, the big investors in the Shanghai Stock Exchange are still waiting and watching, but some retail investors have been frightened and are following the lead of the Seven Stars Company in selling gold. Someone asked me to bring you a message, asking for your opinion. They say that the Seven Stars Company is a government-run company after all, and this suppression of gold prices is not good for the market!"

Chen Guangliang smiled and said, "Hasn't everyone already made up their minds? Since we've already withdrawn from the gold-standard transaction, we'll just get involved. Besides, how could gold actually depreciate in such a situation?"

Hu Jinshun was overjoyed. The boss's words were self-evident. He immediately said, "Boss, why don't we take this opportunity to absorb the gold thrown out by the Seven Star Company? I believe others will think the same way. Then it will be profitable."

Chen Guangliang asked, "You all know that they are officials and businessmen, but don't you know that officials and businessmen like to act like hooligans? What they want may not be obtained in the business world!"

Hu Jinshun was skeptical, but did not try to persuade him any further.

He has already found his new job, which is to join Ping An Securities and work as a broker.

Seeing Hu Jinshun's expression, Chen Guangliang added, "Don't be greedy. The little money you have is more than enough for your family to live a good life, but if you want to speculate and get rich, I advise you to be cautious."

Hu Jinshun immediately said sincerely: "Thank you for your guidance, boss."

Having been with the boss for so long, he naturally believed in his boss's magical skills; therefore, his original idea of ​​investing some money on his own immediately disappeared.

Chen Guangliang nodded. Hu Jinshun had followed him for several years and was loyal to him. He couldn't bear to see him fall into the whirlpool.

Of course, it's certain that the Seven Stars Company might not be able to get off to a good start this time. After all, their tactics aren't very sophisticated. Just because you, a government official, are aggressively short-selling gold in the market, it's impossible for Shanghai traders to agree that gold will fall to zero value.

Chen Guangliang also manipulated the market back then, but he used newspaper opinion and analysis and reasoning to deduce the subsequent market trends, so many businessmen in Shanghai agreed with him.

In mid-January, US President Roosevelt announced the issuance of $1 billion in banknotes, while devaluing the US dollar by 30%. That is, the original value of 40.9 ounce of gold was 1 US dollars, but now the value of 20 ounce of gold is 1 US dollars.

The issuance of 30 billion US dollars in banknotes is backed by "securities".

The news shocked the world.

Of course, in reality, the US dollar has already depreciated by 10% in the foreign exchange market in October last year; now it is just the official announcement of the depreciation of the US dollar.

Chen Guangliang convened a board meeting at the China Merchants Steam Navigation Company, and Minister of Communications Zhu Jiahua, Du Yuesheng, Shi Liangcai, Liu Hongsheng and others were also present.

Afterwards, the deputy general manager of China Merchants Group gave a work report:

"Last year, we abolished the 'comprador system' with decisive success, saving 105 million taels of silver throughout the year. The dual management of the 'captain system' and the 'business department' has significantly boosted China Merchants' performance. In particular, the 'incentive and reward system' implemented by the business department has increased our business by 1932% compared to 30, achieving astonishing results. Last year (1933), China Merchants' profits reached 338 million taels of silver, doubling the 1932 figure."

As soon as he finished speaking, everyone applauded, their eyes filled with disbelief.

The total assets of China Merchants Group are only about 3500 million oceans, which is equivalent to a profit of 10%, but this is an industry such as shipping and docks, and it is only a domestic industry. It is very rare to have such a profit.

Zhu Jiahua smiled and said, "I have witnessed the changes in China Merchants Group. Both inland waterway transportation and coastal transportation are thriving. The 11-way intermodal transport for inland waterway transportation was further consolidated last year, significantly improving the overall national transportation efficiency."

Route 11 combined transport (ships and trucks) is related to the transportation network of important cities across the country. As soon as Chen Guangliang took office, he allocated US$25 to support the purchase of some trucks.

Although Zhu Jiahua did not mention that it was Chen Guangliang's credit, his words naturally expressed it.

then.

The Finance Department also reported on its work:
"Currently, China Merchants has 400 million taels of silver and a cash flow of 350 million taels of silver (1 tael equals 0.7 taels of silver), and its business is thriving. Therefore, if we apply to Citibank for early repayment of the debt, we can save some interest expenses."

If you pay off the debt in advance, there will naturally be no interest later. Their borrowing method is to repay the principal and interest at the same time.

Zhu Jiahua nodded and said, "Tell me about the specific plan."

He knew that all of this was orchestrated by Chen Guangliang, but since Chen Guangliang did not give a work report today, he was probably thinking of quitting.

The head of the Finance Department continued, "We plan to use the equivalent of 600 million taels of silver in cash to repay the principal and interest, which totals just over 300 million US dollars. The remaining debt and interest will require approximately another 300 million taels of silver. We will use this to refinance our loans from three banks—the Commercial Bank, the Huaxia Bank, and the Bank of Communications—to pay off our 8% debt to Citibank."

Among these three banks, two are state-owned banks and one is a private enterprise bank, but they all have close relations with the government; China Merchants Bank only needs 6% for their loans.

This is also the reason why many people wondered whether Chen Guangliang had benefited from the 8% US dollar loan borrowed by China Merchants Group.

Of course, by this time everyone had realized that Chen Guangliang was simply betting on the devaluation of the US dollar.

Zhu Jiahua took the lead in applauding again, and then everyone started to applaud.

He then said excitedly: "I never expected that China Merchants Group has undergone earth-shaking changes under Mr. Chen's management for a year and a half."

The Nanjing government spent about 10 million taels of silver to acquire goods worth more than 30 million taels of silver, which was a huge bargain.

The China Merchants Steam Navigation Company had a remaining debt of 300 million taels of silver (more than 400 million oceans), which could actually be paid off in less than two years, and of course there was no need to rush to pay it back.

Chen Guangliang immediately said, "This is the credit of all the employees of the China Merchants Group. I am just a consultant."

This was true to a degree. He had visited Shanghai and surrounding cities to inspect China Merchants Group operations, but had never even been to Wuhan. All government orders were issued through China Merchants Group No. 9, and of course, key China Merchants Group staff from across the country were rotated to Shanghai for training.

Du Yuesheng then said, "Zhuge Liang alone was able to help Liu Bei establish his own country. Mr. Chen's contribution to the China Merchants Steam Navigation Company is similar. I just did some calculations, and it seems the China Merchants Steam Navigation Company saved five million taels of silver just by borrowing US dollars."

At the beginning, 1 ocean could be exchanged for 0.75 taels of silver, which was equivalent to the China Merchants Steam Navigation Company borrowing 2000 million oceans, or 1500 million taels of silver. Now, by repaying more than 900 million taels of silver, the debt and interest can be paid off, which saves more than 500 million taels of silver.

Coupled with the booming business of China Merchants Group, we have the China Merchants Group we know today.

"I don't deserve it. The loan was approved by T.V. and the general manager. Otherwise, Citibank wouldn't have trusted me."

When Zhu Jiahua heard this, he was immediately satisfied. After all, he also wanted to claim some credit for this achievement.

In fact, this is also his political capital. After all, he is the Minister of Transportation and Chairman of the China Merchants Group.

At last.

Chen Guangliang gave his work report: "This year, in addition to expanding coastal routes, the most important thing for China Merchants Group is to open ocean routes. This is the first real step for China Shipping to enter the ocean. By opening fixed routes to Xingdao and Manila, we can gradually enter the ocean shipping industry. In the second half of the year, two new ships will be shipped from the British shipyard."

It was obvious that China Merchants Steam Navigation Company was going to adopt the posture of "one country shipping" and start competing with the fleets of the great powers in the ocean.

The crowd applauded again.

Today is undoubtedly an exciting day. The China Merchants Group, worth 4000 million dollars, has set sail again. (End of this chapter)