A century-old wealthy family that rose from Shanghai

Chen Guangliang returned to Shanghai in mid-March. His trip to Sichuan took a total of 40 days, half of which was spent on the road. But this was unavoidable, as Chen Guangliang would eventually have to return to Sichuan to seek refuge.

Upon returning to Shanghai, Chen Guangliang immediately discussed with Yan Renmei the possibility of leaving behind the gold she possessed, along with his own, to invest in a sugar factory.

Yan Renmei replied without hesitation, "Since it's an investment, and one that you've chosen, I will naturally give it my full support."

In this way, she used up all of her 500 million savings, of which 150 million was used to repay her debt to Citibank (interest was paid separately), and the remaining 350 million was prepared to be invested in a sugar factory.

With the 150 million in Chen Guangliang's possession, the total comes to 500 million. The shortfall (including investment in shipping) will naturally be covered through loans.

The estimated investment in Sichuan is between 600 and 700 million yuan. Chen Guangliang wouldn't have wanted to invest if it weren't for the needs of the war effort. However, if there's a need for the war effort and an opportunity to recoup costs and even make a profit, he would be very willing to invest.

Chen Guangliang said, "Thank you for your support, my wife! Actually, with my wealth, I don't need to go through all this trouble. But everyone has a responsibility to resist the Japanese invasion and defend our homeland. If I don't do some things, I'm worried that my conscience won't allow it in the future."

Yan Renmei looked at Chen Guangliang with admiration and said, "Brother Liang, you are a great industrialist with a strong sense of responsibility and patriotism."

Chen Guangliang said sincerely, "If our country is occupied by foreign tribes, how can we be happy when we go around the world? Of course, when faced with internal conflicts, it is best for us businessmen to avoid them."

Faced with the Japanese invasion, Chen Guangliang was unwilling to live a life of ease in Hong Kong or the United States. He would definitely participate in the war of resistance, but as a businessman, not on the front lines.

Once the conflict became internal, Chen Guangliang left for Hong Kong and never got involved again.

Yan Renmei wasn't as noble as Chen Guangliang thought, but she still said, "I will take good care of the family."

With that statement, Chen Guangliang felt reassured, but he still added, "Once the war ends, we will go to live in Hong Kong and send our children to study in the United States or the United Kingdom. We can also travel around the world occasionally."

"I really hope that day comes soon."

The two whispered among themselves, their plans for the future already very clear.

Assuming Chen Guangliang had met with an accident during the War of Resistance, Yan Renmei would have taken her children to live in Hong Kong after the war ended, and would never have been involved in the struggle between the two parties.

The following day, Chen Guangliang arrived at the Ping An Bank Building.

He first inquired about the recent government debt situation, but because he was in Sichuan, he didn't have time to look into it.

On January 28th, the first trading day after the Lunar New Year holiday and the last day of futures trading in January, the Shanghai Stock Exchange's government bond market experienced another period of dramatic volatility, with widespread selling and a sharp drop in market prices. At the same time, the Ministry of Finance issued the following measures:

I. The Huashang Securities Exchange is hereby ordered that all transactions and settlements of January government bonds must be conducted in physical form and shall not be swapped. The Ministry of Finance shall dispatch its section chief, together with the supervisor of the Shanghai Stock Exchange, to the exchange to thoroughly investigate any speculative manipulation. Six officials, including Liang Ping, Zhu Xuanzhang, Xu Zhishu, Fu Yan, Wang Jisen, and Liu Xilu, shall be dispatched to the exchange to supervise the provision of physical contracts for January settlements and February transactions.

2. Appoint ministers Cheng Wujia, Zhao Fanlu, and Zhu Naipeng to the Central Bank, Bank of China, and Bank of Communications respectively to jointly inspect and seal the bonds under the deposit reserve and savings reserve of each bank, as well as the bonds under the issuance reserve. They shall not move them without the permission of the ministry.

Third, the investigation concluded that no public officials were involved in speculation or manipulation, and the matter ended with guarantees from the brokers. All brokerage firms, except for the 16 that suspended operations, submitted guarantees stating that no public officials had entrusted them with any speculative trading activities, and that they were willing to be held jointly liable for any violations. They also submitted a list of their clients' names and addresses to the Ministry of Finance to ensure fairness.

On February 3, the Nationalist government announced the suspension of operations of the Shanghai Stock Exchange for Chinese Merchants. Simultaneously, the Ministry of Finance announced a plan to issue 1.46 billion yuan in unified government bonds to replace all 33 types of old bonds in circulation. These unified government bonds were to be repaid in five installments, with the longest term being 24 years. At the same time, it announced the issuance of 340 million yuan in revival bonds as a fund to balance revenue and expenditure and stabilize the foreign exchange market. This was the first time the Nanjing Nationalist government had reorganized the principal and interest repayment plan for government bonds since the 1932 government bond reorganization plan, and it involved all government bonds and treasury bonds publicly issued by the central government since the early Republic of China.

On February 15th, the Ministry of Finance ordered the Shanghai Stock Exchange to open as usual on the 17th. However, given that the unified government bonds had not yet been fully printed and the exchange of old and new bonds had not yet begun, only settlements were made after the market opened. Auctions continued using the old names for various bonds, and new spot and futures trading was suspended. New trading was also suspended for the five types of unified government bonds (A, B, C, D, and E). From February 17th to February 27th, 63 million yuan worth of futures transactions due on January 29th were auctioned, ensuring that all previous accounts were settled and completely cleared before February 27th.

Starting from February 28th, the five types of unified government bonds (A, B, C, D, and E) were officially listed and auctioned.

In March, due to the initial issuance of the unified government bonds and the incomplete exchange procedures, there were no recent transactions for the three types of unified government bonds (C, D, and E), resulting in extremely quiet trading and minimal price fluctuations.

"The price of this Class A unified government bond is currently hovering around 60 yuan, so it's worth investing in. Ping An Bank will buy 300 million yuan of Class A unified government bonds to enrich its investment portfolio."

Ye Ximing nodded and said, "Okay, I originally wanted to invest in the Class A unified government bonds, but since you were in Sichuan for your inspection, I haven't taken any action yet. If the market is good, the price of Class A bonds can easily rise to 70 yuan."

Chen Guangliang immediately said, "Then let's aim for 70 yuan. If it exceeds that price, we'll gradually cash out. We can choose whether to invest or not, so we don't need to take it so seriously."

"clear"

After Ye Ximing left, Chen Guangliang seemed to be deep in thought.

This time, Seven Star Company's involvement is probably not primarily aimed at 'sell off' the original 33 types of government bonds; rather, it's about absorbing a large amount of the original 33 types of government bonds at the lowest point and then exchanging them for the new five types of 'unified government bonds'.

Chen Guangliang missed this wave of market opportunities because he went to Sichuan, but it didn't matter; he could earn a little less.

On a ship sailing from New York to Shanghai, Jack, an American, was looking forward to his trip to Shanghai. He was there to report to his "boss and benefactor," Chen Guangliang, and also to take a sightseeing trip.

He was very grateful to Chen Guangliang for giving him the chance to make a comeback, so this time he decided to come to Shanghai in person to show his loyalty to Chen Guangliang.

In Jack's hand was a travel guide magazine called "Everything About Shanghai," which was quite expensive.

The guide begins by introducing the history of Shanghai's opening to foreign trade, from before the opening to the January 28 Incident, giving a thorough account of Shanghai's history. One section mentions the old names of some streets in Shanghai, such as Nanjing Road, which was once called Park Lane; the Bund, which was once called Yangtze River Road; Sichuan (Middle) Road, which was once called "Daqiao Road"; and Jiangxi (Middle) Road, which was once called "Church Road".

Next, we will introduce the somewhat complex governance model of Shanghai. Although the administrative system of one city and three prefectures in Shanghai during the Republic of China era was enough to make outsiders dizzy, the judicial jurisdiction was even more complicated. Several major Western imperialist powers had overseas courts or foreign affairs courts in Shanghai, which will not be described in detail here.

Shanghai's geographical location and the unique characteristics resulting from its historical changes since modern times have made it China's economic capital, and its population has soared to the sixth largest in the world, with the potential to surpass Chicago and become the fifth largest by 1935 (the guide was published in 1934). However, foreigners actually accounted for less than one-thirtieth of the population, and even in the concessions, they did not reach one-tenth.

Built in 1934, the International Hotel was the tallest building in the Far East and the tallest building outside the United States.

Of course, we must also mention the Shanghai General Chamber of Commerce building, and its bar counter, which was touted as the "world's longest." However, the guide predicted that since the United States had just overturned Prohibition, this record would soon change hands.

Not far away, at the end of Edward VII Road, where the British and French concessions met, stands the Victory Goddess Statue, erected in memory of the adventurers who came to Shanghai to seek their fortune but perished in World War I. This is one of Shanghai's most iconic landmarks, and the view from Waibaidu Bridge to the Victory Goddess Statue is a panoramic view of the Bund in 1935, a microcosm of Shanghai.

The main means of getting to Shanghai were still by ship and train. Transoceanic flights were still a very difficult thing in those days. At this time, Chinese airplanes were mainly used for military, commercial and postal purposes (Xu Zhimo died on a postal plane).

Passengers are prohibited from bringing salt and narcotic drugs into Shanghai (except for drugs containing a reasonable dosage). Because the authorities monopolize the salt industry, not even a single grain of salt can be brought into Shanghai.

Passengers were prohibited from carrying wool and silk textiles, because if these goods were found to be smuggled into the country, the tariffs could be as high as 80% and as low as 30%, which shows how dependent China was on the textile industry at that time.

For foreigners who have traveled across the ocean, the quality of their nightlife—drinking, dancing, and enjoying themselves—is paramount, and tea parties at the Cathay Hotel and Astor House Hotel are naturally indispensable.

Shanghai's Western-style "cabarets" are more than just food; they offer a variety of lively performances and dances. Cabaret is categorized into three levels based on its level of sophistication: the first is relatively elegant, the second is more vulgar, and the guide's author remains silent on the most daring third category. The guide also jokingly suggests that if you only have one night left in Shanghai, don't linger in the same place—there are so many options, from luxury hotels to the "Blood Alley" favored by sailors. This so-called Blood Alley is Zhu Baosan Road, now Xikou Road. Because it was near the Huangpu River docks, it was filled with sailors seeking revelry or pleasure, and they would fight over all sorts of things, leaving blood everywhere, hence the name.

Jack looked at the guide and chuckled, "Only such an interesting place could produce such a wealthy and charming boss!"

He genuinely admired Chen Guangliang, not for Chen's wealth or the fact that Chen had saved him, but for Chen's talent and insight, which far surpassed those of many Americans he had met. For example, in terms of stock market investment, as far as he knew, the fund companies his boss invested in and the stocks he invested in himself likely made substantial profits last year.

When Jack arrived in Shanghai, Chen Guangliang and Jiang Meiying hosted him at the Shangri-La Hotel.

“Jack, you didn’t need to come all the way to Shanghai. I have complete faith in you.” Upon meeting, Chen Guangliang gave Jack a hug and said affectionately.

In fact, there are many good people among foreigners, and many who know how to be grateful.

For example, several of Zhang Xueliang's foreign advisors in his previous life took good care of his wife and children after returning to the United States. They even went to England to find his three children from his first wife and brought them to the United States.

But there is a type of foreigner we need to be wary of: those 'rotten foreigners' who come to the Far East dreaming of getting rich. These foreigners are definitely thinking of swindling money and making a quick buck before leaving.

Jack smiled and said, "It just so happens that I was thinking of coming to Shanghai for a trip, and I can also meet my boss. What a wonderful thing! Boss, is this your wife?"

Chen Guangliang pointed to Jiang Meiying and introduced her, "This is my second wife. I have two wives in total. I brought her to meet you today so that you can get to know each other. Who knows, maybe one day, if Japan invades our China, I will consider letting this wife bring the children to live in the United States. I hope you, my friend, can help me then!"

Jack immediately replied, "Of course, if the boss's wife and children come to America, they are also my superiors, and I'm happy to serve them."

After exchanging pleasantries, everyone sat down to eat and continue chatting.

During the meeting, Jack reported: "Last year, your total rental income from your properties in the United States was US$15.25. After deducting taxes and expenses, the net profit was US$10.8. I have entrusted Citibank with this fund. You can withdraw this fund in Shanghai, but there will be a small departure tax."

Chen Guangliang said, "Then there's no need to leave the country. I'll just keep it in Citibank in the United States. I feel very reassured."

Of his properties in the United States, all but one plot of land and property on Long Island are rented out.

In fact, the profit was about $12 a year, with the remainder being commissions paid by Chen Guangliang to Jack. Jack managed the properties for him, and Chen Guangliang was also fully responsible for some of the renovations and repairs.

It was worth it all along.

Jack nodded and said, "By the way, the properties you bought have generally appreciated quite a bit since the US recovered from the Great Depression last year. Not only that, we raised the rent this year, so your returns are expected to increase as well."

Chen Guangliang has invested a total of US$180 million in properties in the United States, of which nearly US$170 million are rental properties, mostly apartments, and many of them are high-end apartments.

"Okay, you can take care of this."

Jack added, "Not only that, the US stock market rose 47% last year, and the securities you invested in probably made a lot of money. I even inquired about Graham-Newman's investment information, and their investment returns far exceeded the market average."

Chen Guangliang smiled and said, "I know a little about that. Generally speaking, I am a long-term investor and don't pay much attention to how much I earn in a year."

Chen Guangliang believes that a 20% annual return is still achievable.

Jack said, "You're a real investor. To be honest, I've already done what you taught me to do—invest in the American military industry."

Jack greatly admired Chen Guangliang for his substantial funds and relaxed attitude.

Chen Guangliang smiled and said, "Stocks are meant to be long-term investments. Europe has Germany, an ambitious country, and Asia has Japan and China, ambitious countries. The US arms business has a very promising future."

Jack nodded and took it as his motto.

Last year, his dividend was a little over 1 yuan, which is 10% of the profit.

An American worker earns only $800 a year, which is more than 12 times that of others.

Now, Jack has bought a used car and moved into a luxury apartment with his wife and children.

Afterwards, Chen Guangliang introduced Jack to a tourist guide for Shanghai, since Jack had come from afar and he wanted to act as a host. He even agreed to spend the next day with Jack, hoping to strengthen their relationship.

Afterwards, Chen Guangliang and Jiang Meiying returned to the villa.

Seeing the many questions on Jiang Meiying's face, Chen Guangliang said directly, "I predict that Japan will inevitably invade China within two years. However, we should go to Hong Kong to avoid it in the first half of next year. You should also take the children to Hong Kong first. Going to the United States is still a long way off; it depends on the situation."

He favored having Jiang Meiying take the children to live in the United States in 1940.

Jiang Meiying was finally relieved. The later she went to the United States, the happier she became, since she would be closer to Chen Guangliang.

"Should I buy a house in Hong Kong so I won't have nowhere to stay next year?"

Chen Guangliang laughed and said, "It's all arranged. A Western-style building is under construction in the Mid-Levels area. And when it's done, I'll try to arrange for Renmei to meet you. Please give me some face and be friendly!"

Jiang Meiying pursed her lips and said, "I wouldn't dare. She's the legitimate wife. If she says I can't come in, then I've never even been able to get into the Chen family's house."

In my heart, hope has already been ignited.

She can now completely accept being a concubine.

Chen Guangliang said, "I'm trying to fight for this. I know it might be unfair to you and your son, but I'm sure I can handle it."

Jiang Meiying knew that Chen Guangliang was in a difficult position, so she kindly said, "Okay, I'll listen to you."

Chen Guangliang was very moved. Jiang Meiying had always been gentle and considerate. Sometimes he thought that if Jiang Meiying were his first wife, he would probably have married several concubines.

However, in Chen Guangliang's heart, Yan Renmei was still the best first wife because she had a strong side. Such a wife, at least, made Chen Guangliang feel that even if something happened to him, the family wouldn't fall apart.

Moreover, in the past year or two, Yan Renmei's attitude towards Jiang Meiying has softened somewhat. The simplest example is that when Chen Guangliang stays out overnight, Yan Renmei no longer says anything. This has made Chen Guangliang feel at ease spending two days a week with Jiang Meiying and their son Chen Wenjin, and occasionally three days a week. Even the child's grandmother, Yang Hui, often comes to visit her grandson. (End of Chapter)