A century-old wealthy family that rose from Shanghai

Chapter 313 The Yarn Exchange Scandal
Another spring has arrived (1937).
In mid-March, Chen Guangliang, along with Jiang Meiying and her son, boarded a ship operated by Global Shipping and headed straight for Hong Kong.

On the ship, there was a batch of gold worth 2.4 taels, which was Jiang Meiying's wealth; in addition, there was a large amount of luggage belonging to Jiang Meiying and her son.

Clearly, Jiang Meiying and her son will be moving to Hong Kong this time.

The reason for going so early was that Chen Guangliang had arranged for them to go in three batches, which was to control the risk.

The weather in mid-March was still quite damp and cold. Chen Guangliang chatted with Jiang Meiying and Chen Wenjin in the cabin.

Chen Wenjin is already over 2 years old this year. He doesn't understand what this long journey means yet, he just finds the boat ride very interesting.

Chen Wenjin asked curiously, "Dad, are there big houses in Hong Kong?"

Chen Guangliang patted his little head and said, "Of course there are. Do you really like big houses that much?"

Chen Wenjin said in her childish voice, "It's because Mommy likes big houses."

Jiang Meiying gently pinched his cheek and said, "Little guy, don't you like big houses?"

I like it too.

At this moment, Chen Guangliang said, "The villa on the hillside has just been built, and the furniture and everything else have been bought. Let's go and live there."

He purchased two plots of land in the Mid-Levels area, one for a little over 20,000 square feet and the other for 12,000 square feet, and construction on both has been underway for over a year.

Because she did not pursue luxury, the construction period was relatively short. Jiang Meiying's villa was completed in January, and her younger brother Chen Guangcong purchased and furnished it.

Although everyone is going there to seek refuge, the difference between the rich and the poor is still noticeable.

After Chen Wenjin fell asleep, Chen Guangliang held Jiang Meiying in his arms, knowing that she was feeling a little seasick.

"It's strange, but I felt much better on the boat this time. Did you give me some kind of magic potion?"

"This is the magic elixir."

Chen Guangliang made a gesture as if to kiss her, and Jiang Meiying promptly pressed herself against him, the two sharing a tender moment.

Then, with a hopeful look in her eyes, Jiang Meiying asked, "When are you coming to Hong Kong?"

"Next month, Mom will take Wenjie to Hong Kong first; after that, we will basically all come to Hong Kong. Don't worry, we can still get together frequently for at least three years."

"Yes, this arrangement is good. I want to have another child!"

Jiang Meiying suggested having another child, which made Chen Guangliang happy. He said, "Okay, let's have one this time. Shall we start now?"

Jiang Meiying said shyly, "What are you thinking? The soundproofing is so bad, and Wenjin is still here."

Chen Guangliang also put away his feelings; he wasn't that open-minded.

Although the ship was mostly his own people, apart from some of his cargo, it wasn't a yacht and obviously couldn't be used as a private villa.

Upon arriving in Hong Kong, Chen Guangcong waited for Yang Xiuying and her son at the pier.

Chen Guangcong greeted them respectfully, saying, "Sister-in-law Mei Ying, Wen Jin, welcome to Hong Kong!"

To distinguish them, he still addressed her as "Sister-in-law Meiying." Although Jiang Meiying had not married into the family, given his brother's attitude, he would certainly try to win her over.

Therefore, the respect that is due should still be shown.

"Hello, it seems we're going to be neighbors this time!"

Yang Xiuying said, "We live a little distance from Sister-in-law Meiying's house, but if you need anything, we're ready to go anytime!"

That sounds a bit awkward!

Jiang Meiying pretended not to know and said, "How could I possibly ask you for help? I heard that Guangcong is now very successful and can help your brother."

Chen Guangcong quickly said, "I'm still learning how to do things for my brother. Sister-in-law Meiying, please don't be shy in the future. Just let me know if you need anything."

At this moment, Chen Guangliang said, "Let's go, no need to be so polite. We're all family. It's essential for us to help each other and stay united in Hong Kong in the future."

As soon as he spoke, everyone naturally rallied together, and Yang Xiuying dared not make any more small moves.

In fact, she had just lost her composure. She was still thinking about one thing—since her cousin was able to marry a concubine, why did he refuse her so blatantly back then?

Of course, she is very happy with her second cousin now. She was just reminded of something from the past and then forgot about it.

After arriving at the mid-mountain area, the car headed towards Conduit Road.

Gande Road is a long road halfway up the mountain, and the Chen family lived on this road afterward.

Upon arriving at Jiang Meiying's new villa, Chen Guangliang still sensed the aura of a 'mansion'. Firstly, the villa occupied an area of ​​12000 square feet, equivalent to about 2 acres. The main building was a three-story villa, and there were also courtyard walls and security posts.

The entire process, from purchasing the land to completion, took only a year and a half.

After the tour, Jiang Meiying and her son officially settled in. They were no longer completely unfamiliar with the place, since Chen Guangcong's family had been living in Hong Kong for more than two years.

The next day, Chen Guangliang went to Ping An Bank in Central, accompanied by Jiang Meiying.

Jiang Meiying's 2.4 taels of gold will naturally be deposited in the vault of Ping An Bank, awaiting the opportunity to be transferred to the United States.

After completing the relevant procedures, Jiang Meiying's assets were transferred to Hong Kong. Of course, this was only a small part and not much.

Subsequently, Chen Guangliang reviewed Cheung Kong Property's investment properties in Hong Kong in his office.

Cheung Kong Properties has purchased approximately 500,000 square feet of residential land in Hong Kong (equivalent to nearly 90 acres), which will be used to build approximately 300 three- to five-story detached houses.

“Currently, we have completed 120 buildings, and the rest will be completed by the end of the year. However, the construction costs are mostly covered by loans, and Ping An Bank’s Hong Kong branch is also feeling a lot of pressure, urging us to rent them out as soon as possible to repay the debt,” Yan Kuan said with difficulty.

Although the boss instructed that Ping An Bank's Hong Kong branch would definitely provide construction loans, Ping An Bank's deposits in Hong Kong were already not much, so they did feel a lot of pressure.

Chen Guangliang immediately said, "I exchanged HK$200 million during my trip to Hong Kong, of which HK$150 million has already been used to repay the construction costs for Cheung Kong Properties. So, you don't need to worry about the debt anymore. There shouldn't be any problem raising the remaining construction costs and rent, right?"

Yan Kuan immediately replied, "No problem. The total construction cost and taxes are estimated at HK$200 million. We've already started renting it out this year, so we can resolve the rest later."

Chen Guangliang nodded. The total investment in these land plots and properties by Cheung Kong Properties was 400 million, which was already a considerable amount of assets. Even considering the 50 square feet of land, and the fact that it was prime residential land in Yau Tsim Mong and Hong Kong Island, it would still be a huge asset in the future.

The HK$200 million he brought this time was actually the proceeds from the sale of Global Shipping. After paying HK$150 million to Cheung Kong Properties, the remaining HK$50 could be used by Jiang Meiying to purchase some properties in Hong Kong.

Although this person will be living in the United States in the future, having more security is a good thing.

Chen Guangliang only stayed in Hong Kong for ten days before rushing back to Shanghai. Including travel time, it took him half a month to get back.

Of course, settling Jiang Meiying in a room also meant the start of the 'relocation'.

Chen Guangliang has already sent his younger brother Chen Guangcong back to Shanghai with him, and then in April, he will bring his mother Yang Hui and eldest son Chen Wenjie to Hong Kong.

Traveling in batches is safer.

Ping An Bank.

Xia Gaoxiang and Ye Ximing walked in.

"Boss, cotton yarn has risen to 248 yuan per bale. There really are people aggressively buying it up!"

Chen Guangliang raised his head and asked, "Who is pushing the price up?"

Ye Ximing then reported: "Xu Maochang, who is Xu Qingyun's second son, seems to have someone supporting him behind the scenes, and this time the support is very strong."

Generally speaking, the price of each bale of cotton yarn fluctuates by 5 to 8 yuan within a delivery period.

However, starting in October of last year, the price of cotton yarn bales had already risen to the end of February this year.

Logically, prices should have fallen after the end of February, as the off-season had arrived.

Then, instead of falling, it rose by nearly ten yuan, which is abnormal and means that someone is definitely buying.

Chen Guangliang asked, "How much wealth does he have?"

Ye Ximing said, "After Xu Qingyun died, it seems that his two sons each received a huge sum of 350 million yuan, which is quite a lot of money."

Chen Guangliang nodded, remembering that Xu Qingyun was very wealthy.

The Xu family's cotton yarn business began with Xu Qingyun's father, Xu Jinzhang, who ran a yarn shop in the British Concession of Shanghai and was known as the "Old Ghost of the Yarn Industry." Xu Jinzhang died young, and Xu Qingyun took over. At the age of twenty-two, he founded "Futai Cotton Yarn Shop" in Shanghai. During World War I, he purchased cotton cloth from foreign merchants for one million taels of silver, making more than double his profits and becoming a giant in Shanghai's yarn industry. In 1922, Xu Qingyun became a comprador for the British Bank. In 1923, he took over "Dafeng Yarn Factory," renamed it "Dafeng Qingji Yarn Factory," and became its general manager. He also served as a director of the Yarn Industry Association, a director of the Shanghai Chinese Yarn Factory Federation, and chairman of the Chinese Yarn and Cloth Exchange. Xu Qingyun also ran a money exchange, establishing several banks in Shanghai, either independently or in partnership, including "Henglong," "Henglai," "Dunyutaiji," "Yintai," "Hengyi," and "Tongqing," making him one of the ten richest men in Shanghai at the time.

In 1931, Xu Qingyun died at the age of 51, and his huge estate was inherited by his two sons, Xu Maoshang and Xu Maochang.

The eldest brother, Xu Maoshang, was a member of the Green Gang. He followed in his father's footsteps and went into business, and was quite active in gang activities. The second brother, Xu Maochang, was a playboy who always acted without any rules or methods, doing whatever he pleased, and was known as "the trackless trolley".

He is considered a well-known figure.

"Could it be that Du Yuesheng is supporting Xu Maochang? Does that mean 'Sanling Company' is going long?" A thought quickly crossed Chen Guangliang's mind.

Xu Maochang's elder brother was a member of the Green Gang, so it was possible to make contact with him.

The so-called "Three-Age Company" refers to the three women headed by Soong Mei-ling, Soong Ai-ling, and Soong's adopted daughter, Miao-ling.

"Should we throw it?" Ye Ximing asked tentatively.

Hsin Feng Textile has a large amount of stock on hand, which is probably unknown to many people.

Chen Guangliang immediately said, "Tell the people at Xinfeng Textile to keep 2 bales of cotton yarn in stock in the concession area, and not to use them. As for selling them off, wait for my message, and everything must be kept strictly confidential."

Ye Ximing quickly replied, "Okay."

After the two left, Chen Guangliang pondered again: who exactly was the opponent of "Sanling Company," Du Yuesheng, and Xu Maochang this time?
After all, without a counterparty, what's the point of playing? There's no way you can make money.

Of course, he's now completely unfazed.

In the first scenario, if the price of cotton yarn is indeed driven up to a very high level, such as 280 yuan per bale, then Xinfeng Textile will take the opportunity to sell off 2 or even 3 bales to survive.

In the second scenario, if cotton yarn prices don't rise, Xinfeng Textile can stockpile these materials without incurring losses; it's just a matter of how much profit they would make.

Industry experts couldn't help but sneer when they saw Xu Maochang buying cotton yarn in large quantities. They said that this kid was relying on the huge inheritance left by his father and was recklessly jumping into the stock market to play around.

Among them were several experts (including agents) who had previously benefited from Xu Qingyun. Feeling sorry for the young master Xu wasting so much money, they offered their advice. Some even invited Xu Maochang to dinner and had long talks with him over the meal.

However, the trolleybus ignored everyone's warnings and continued to drive recklessly forward, stubbornly refusing to turn back. So, people stopped bothering to say anything more.

Xu Maochang's antics naturally attracted attention and alarmed the "Northern Four Banks".

The "Northern Four Banks" were four well-known Chinese-owned banks in the national financial sector at that time: Jincheng Bank, Salt Industry Bank, Zhongnan Bank, and Continental Bank. Their financial influence extended throughout the area north of the Yangtze River, hence the name "Northern Four Banks".

Of these four banks, Zhongnan Bank was authorized to issue currency. The other three banks joined forces with Zhongnan Bank to form a "Four Banks Savings Association," which greatly benefited the financial sector's capital operations. As a result, the "Four Northern Banks" dared to engage in some businesses that other banks dared not venture into.

This time, when the "Four Northern Banks" learned that Xu Lao Er was actually investing heavily in a long position, they immediately became interested. These four banks already had some cotton yarn futures in stock, so they decided to sell them and then buy them back when Xu Maochang could no longer sustain his long position and had to sell them at a low price. They expected the trading volume to be large, and even so, the "Four Northern Banks" could still make a fortune from this transaction.

As soon as the "Northern Four Banks" made their move, some big players in the stock market and ordinary retail investors followed suit and sold off their stocks (cotton yarn futures).

Strangely, some people of unknown origin also squeezed in to support Xu Maochang.

The "Northern Four Lines" investigated this matter and analyzed that some of these people might be friends of Xu Maochang's father, Xu Qingyun, while others were friends of Xu Maochang, the eldest son of the Xu family, from out of town.

Thus, a short-selling group led by the "Northern Four Banks" and a long-selling group led by Xu Maochang were formed in the market.

The "Northern Four Banks" are full of financial experts and stock market gurus. Their confidence comes from their analysis of the market: it is estimated that the bulls will not have enough funds to pay the amount due for ordering futures contracts by the futures trading deadline, so they will have no choice but to sell at a low price.

The short sellers would then buy back the shares, and the price difference would be their profit. With this in mind, the short-selling group always sold more shares than they were worth, thoroughly teasing Young Master Xu.

When the time comes, Xu Maochang, whose "deadline is approaching," will be the first to lose his composure and be forced to sell the shares he bought when he went long at a low price. Otherwise, the Shabu Exchange will force him to liquidate his position.

In other words, Xu Maochang's "deadline" comes first, while the short-selling group's deadline comes later. The short sellers can definitely make up for the over-sold shares at a low price before Xu Maochang goes bankrupt.

Starting in April, the two major groups began a fierce battle at the Shanghai Stock Exchange's Huashang Yarn Exchange, with followers joining in and fueling the speculation frenzy surrounding cotton yarn.

(End of this chapter)