A century-old wealthy family that rose from Shanghai

Chapter 321 Making More Money

A New Year Comes (1938).

On New Year's Day, Yan Renmei invited Jiang Meiying and her son to a reunion at the villa on Conduit Road, which made Chen Guangliang feel very good.

In fact, both women were pregnant one after the other, and their pregnancies were both around five months along. They became pregnant after Chen Guangliang arrived in Hong Kong.

Of course, although Yan Renmei allowed Jiang Meiying to reunite at the villa, she made no mention of letting Jiang Meiying and her son enter the house.

Chen Guangliang also kept this in mind, and planned to bring it up after the two women gave birth this year, and then give Jiang Meiying a wedding.

Now that things have come to this, a man still needs to show some backbone. After all, even a "second-generation rich kid" knows how to take a concubine, so Chen Guangliang, a businessman, can certainly do the same.

Fortunately, Hong Kong law allows marriage, and he plans to change his residency to Hong Kong.

The lobby on the first floor was bustling with activity, including Chen Guangcong and his wife Yang Xiuying.

The second generation of the Chen family already consisted of six people, including Chen Guangliang's nephew Chen Wenbo, as well as the two children in Yan Renmei and Jiang Meiying's wombs.

Jiang Meiying was also very happy to attend such a family gathering. She had rarely put pressure on Chen Guangliang, but that didn't mean she didn't want to become Chen Guangliang's second wife legitimately.

She was happy inside, but asked with concern, "Sister, why aren't Uncle and the others coming to Hong Kong?"

Yan Renmei laughed and said, "Don't say anymore. He came to Hong Kong for a tour and said that Hong Kong was really backward and he couldn't get used to living there, so he went back to the concession."

Jiang Meiying replied, "That's really true. I also called my father and the others over, but guess what? He said that the concessions are very profitable now, so why bother coming to Hong Kong?"

Yang Xiuying quickly joined in her two sisters-in-law's conversation to avoid being left out. She said, "Yes, my parents don't run a business, and they're reluctant to come here now. They say life in the concession is more comfortable."

Then, the three women looked at Chen Guangliang, implying that he should give his comments.

Chen Guangliang laughed and said, "No rush, this is not the time for me to intervene. At this time, the concession is indeed experiencing abnormal prosperity, with the population doubling and wealth increasing dramatically. In addition, your parents do not have much social influence, so they are unlikely to be targeted by Japanese spies; even if the concession falls a few years later, there will be no danger. Of course, I will inform them to go to Chongqing before the concession falls."

Yang Xiuying asked bluntly, "Brother, how do you know when the concession will fall?"

Chen Guangliang smiled and said, "Of course, it's about using your brain. Many things are based on reason, so there's no need to worry about survival. I'll take care of it."

Although Yan Zhiduo did not live in Hong Kong, he invested HK$100 million in property assets, which shows that he fully trusts his son-in-law Chen Guangliang.

The reason for not living in Hong Kong is that there are still many businesses in Shanghai, and it is not easy for the whole family to decide to leave Shanghai.

But if the concessions were to fall, Yan Zhiduo would listen to his son-in-law and go to live in Chongqing.

As for after 1945, it was even easier to persuade him, since Yan Zhiduo had always taken Chen Guangliang's choices very seriously. Although Chen Guangliang had come to Hong Kong to seek refuge, he had not abandoned his properties in the concession, so Yan Zhiduo was not in a hurry.

That night.

Yan Renmei allowed Jiang Meiying and her son to stay at the villa, which greatly excited Jiang Meiying.

Chen Guangliang naturally dared not say much and could only let Yan Renmei make arrangements. He was not actually 'henpecked', but rather hoped for 'family harmony', especially that nothing would happen to the main wife's branch of the family.

So, he naturally slept with Yan Renmei in his arms that night, without asking Jiang Meiying, since his mother Yang Hui was there to take care of him anyway.

"Aren't you very proud of yourself?" Yan Renmei said deliberately, lying in Chen Guangliang's arms.

Chen Guangliang immediately said in a serious tone, "What's there to be proud of? Even if I am proud, it's only because I married a good wife!"

Yan Renmei said sadly, "You still have the nerve to say that! Because of Mei Ying's matter, I don't know how wronged I feel. My three aunts, godmother, Lingyi and the others, don't they all think that it is such a low thing for me to tolerate Mei Ying and tolerate you?"

"Yes, yes, I admit that."

Chen Guangliang immediately admitted his mistake.

Although it was common to take concubines in this era, women with a modicum of sense would find it difficult to accept.

Even though Du Yuesheng wanted to marry Meng Xiaodong and had been a "simp" for years, he still hadn't succeeded. Back when Meng Xiaodong divorced Mei Lanfang, Du Yuesheng extorted 40,000 silver dollars from Mei Lanfang as a settlement.
If an actress is so "precious," then what about outstanding women like Yan Renmei and Jiang Meiying, who are labeled with "extraordinary backgrounds," "independent thinking," and "new-era women"?

It is fair to say that Chen Guangliang's wealth alone would not have been enough to create the scene we see today.

Yan Renmei continued, "But I'm going to bet, bet that what you told me is true, that I am now and will always be the happiest woman. So, I can accept Jiang Meiying into the family, but only this once, otherwise I really will be with you."

She dared not utter the last word!
Chen Guangliang immediately said with great joy, "I swear, if I ever make this mistake again, I will work hard for the rest of my life."

Yan Renmei immediately covered his mouth and then said, "Don't swear, I believe you!"

Over the years, she had come to terms with Jiang Meiying's existence and believed that Chen Guangliang would no longer have any other thoughts. Now that everyone had ended up in Hong Kong seeking refuge, and they might separate again someday, she simply compromised and let Jiang Meiying into the family.

That night, Chen Guangliang truly felt very happy.

Women don't need many; two close friends are enough.

By the end of 1937, European and American shipping companies had resumed shipping routes to the North and South Oceans and the Yangtze River.

At the same time, the economy of the "isolated island" (Shanghai) has recovered remarkably, with factories resuming operations at an astonishing speed.

With the population of the concessions surging from 1.5 million to 4.5 million, the demand for food, clothing, and other necessities was enormous, and the price of these supplies had increased by at least 40% compared to the area in front of the station.

For a time, investments saw phenomenal returns.

Moreover, the factories in the concessions not only supplied China but also exported to Southeast Asia, earning substantial foreign exchange earnings.

In the new year, Xinfeng Textile's financial situation was also tallied. In 1937, the company made a total profit of 560 million yuan, including 250 million yuan in profits from speculating on cotton yarn, with a return rate as high as about 80%.
Moreover, Xinfeng Textile has a large inventory of yarn spindles, enough to supply the two factories it leases for more than a year. These yarn spindles themselves have actually increased in value by about 50%.

At the same time, Xinfeng Textile has been continuously purchasing cotton, which is equivalent to constantly storing cotton and yarn.

After distributing a dividend of 400 million in 1937, Hsin Feng Textile's total assets rose to 1500 million (with liabilities of 300 million used for yarn spindle inventory), and its net assets reached 1200 million (four factories and yarn spindles).

This means that in less than three years, the assets had more than doubled (including dividends), a truly astonishing return. Of course, the main profit came from speculating on cotton yarn, amounting to over 500 million. And then, Xinfeng Textile truly began its journey. The four textile factories not only received military cotton cloth from the rear but also opened up overseas trade exports and access to the high-end consumer market in the concessions.

The concession area, Ping An Bank Building.

Xia Gaoxiang, Ye Ximing, and Zhang Shounian were having a secret meeting in the office.

"The boss sent someone with a letter, instructing us to exchange another 300 million yuan of Chinese currency for US dollars and transfer it to Hong Kong as soon as possible!"

The three of them took turns looking at the letter, confirming that it was the boss's handwriting and bore the corresponding official seal.

Ye Ximing said, "The boss is worried that the exchange rate of the fiat currency will not be stable, so he decided to increase the amount of US dollars exchanged, which will probably be transferred to the United States later."

Xia Gaoxiang waved his hand and said, "We don't need to worry about the follow-up matters for now. The most urgent thing is to exchange for US dollars. You two are in charge of this. Then transfer it to Hong Kong. Make sure no one finds out, so as not to affect our reputation."

"no problem!"

Last year, they cashed out 200 million yuan (60 US dollars), and now they are cashing out another 300 million yuan (90 US dollars); in addition, they will cash out 300 million yuan in silver dollars and pounds to buy some stocks denominated in silver dollars and pounds.

In total, Ping An Bank has redeemed a total of 800 million yuan in legal tender.

The 800 million yuan was basically depositors' funds, which were temporarily 'borrowed' by Ping An Bank. It would naturally be repaid later through dividends, rental income, and profits from the sale of textile machinery and equipment by Xinfeng Textile.

In fact, Chen Guangliang had anticipated that Xinfeng Textile's profit this year (1938) would be over 600 million, and Ping An Bank's (Shanghai Stock Exchange) profit would be at least 400 million (due to speculation in textile machinery and equipment, rent, and loans to factories invested in the concessions).

Therefore, there is no problem with doing this.

Then, Xia Gaoxiang said, "The stock investment also needs to continue; we cannot slack off!"

Ye Ximing nodded and said, "It's all arranged. We'll buy them all by the end of February. This way, it won't attract market attention, and it will also make it easier for us to exchange silver and pounds."

Because the stocks the boss specifically mentioned were mostly denominated in silver or pounds, you needed to exchange fiat currency before you could buy them.

Similarly, the subsequent appreciation of these stocks is also denominated in the corresponding currency. When the fiat currency depreciates, the stocks themselves do not depreciate. On the contrary, it will accelerate the investment of those holding fiat currency in these stocks to achieve the effect of preserving the value of their assets.

The 300 million fiat currency used to purchase stocks is quite a lot; just considering stocks priced in 'silver' and 'pound', it's equivalent to buying 1-2% of the market.

Of course, there are also stocks denominated in 'fiat currency', 'US dollar', and 'Japanese yen', with 'fiat currency' stocks alone reaching hundreds of millions of yuan.

After a brief exchange, before the meeting was adjourned, the three heard a staff member report that Tong Runfu and Li Shengbo from Xinfeng Textile had come to discuss matters.

Immediately, the five people gathered in the office.

Tong Runfu immediately said, "I heard that Ping An Bank has a batch of imported textile machinery and equipment in its warehouse?"

Xia Gaoxiang didn't hide anything and said, "That's right. We bought this batch of equipment before the Battle of Shanghai. We originally planned to open the third Shanghai factory of Xinfeng Textile, but now that Hong Kong and Chongqing have started construction, we plan to sell this batch of equipment at a good time later."

Tong Runfu quickly said, “Manager Xia, this is a mess. Apart from the concessions, almost all the textile factories along the coast have been destroyed by the war. The national demand for cotton yarn and cloth is enormous, even leading to a situation where cotton is cheap while cotton yarn and cloth are expensive. We have existing machinery and vacant land in our factory. If we use this equipment to expand production capacity, we can guarantee a huge return this year (1938). Ping An Bank's sale of equipment is a one-time transaction, at most 50-60%, not exceeding 100%; but investing in expanding production capacity, we might break even in a year. Right now, in the concessions, who isn't trying every means to open a factory?”

Xia Gaoxiang, Ye Ximing, and Zhang Shounian exchanged glances, because these strategies were formulated by the boss, but now Tong Runfu's words also made a lot of sense.

Ye Ximing then said, "Then we'll ask the boss and give you an answer tomorrow."

"Okay, I believe Mr. Chen has a long-term vision and won't just look at immediate benefits."

That's natural.

Chen Guangliang soon received a telegram from Shanghai. Because he was not in Shanghai, he did not have detailed data on how booming the industrial development in the concession was.

(Historically, in 1938, the number of textile workers in Shanghai increased from more than 30,000 to 130,000, and the number of factories increased from 400 to 4000, including small factories; Shenxin No. 9 Factory earned 10 million yuan in 1939 alone, and paid off a lot of its pre-war debts.)

However, Chen Guangliang still chose to trust the judgment of his subordinates, namely the advice of Tong Runfu, Li Shengbo and others, which he completely believed—selling equipment was definitely not as profitable as opening a factory.

In Chen Guangliang's plan, the Shanghai Stock Exchange would continuously generate profits in 'fiat currency', which would then be converted into foreign exchange and gold, transported to Hong Kong, and then prepared to be deposited in New York.

He immediately replied to the Shanghai Stock Exchange via telegram, stating that the machinery and equipment would be used to expand production capacity.

Afterwards, Chen Guangliang began to study the welfare benefits of 'employees in Shanghai'.

Firstly, the allowances are mainly for management and technical personnel, who are the core of the company and factory's profits, so these people receive benefits such as employee dormitories and rice and oil subsidies.

Secondly: It's already good enough that ordinary workers' wages haven't been reduced. You have to understand that the factories in the concessions had no shortage of workers. In fact, the wages of workers actually decreased in a roundabout way as time went on. For example, the cost of food and accommodation increased from 60% to more than 80% of the salary.

Although Chen Guangliang wanted to treat his workers better, it was detrimental to team unity and the industry. Of course, his factory still offered some of the best benefits in Shanghai, such as the "three festivals" and "13th-month salary" benefits that had been in place for a year or two.

In this way, the labor costs of starting the factory will not increase, and the profits will increase significantly. Chen Guangliang was quite pleased with this calculation.

Of course, he still considered the 'welfare' of workers and ordinary staff, which was to use rice and oil at a price slightly lower than the market price to offset wages.

In this way, the "Chen's Enterprise" can centrally purchase supplies such as rice and oil to offset part of the workers' wages, so the enterprise's burden is not large, but the employees' burden is reduced.

In summary, Chen Guangliang's next goal was to make the management and technical staff of his companies more comfortable than those in other factories and organizations. For example, the management and senior staff of Ping An Bank had better benefits than those of state-owned banks, and the management and technical staff of Xinfeng Textile were also the best in the industry.

After all, the next three years are crucial. The profits of Ping An Bank, Xinfeng Textile, the sugar factory, and others need to be converted into foreign exchange and gold and deposited in a safe place.

Chen Guangliang doesn't feel guilty or sorry for the War of Resistance against Japan!

It's important to understand that, based solely on the 100 million taels of silver imported that year, Chen Guangliang actually contributed 50 to 60 million US dollars in foreign exchange to the war effort. Not to mention his contributions to sugar and shipping, which also significantly boosted the nation's economy.

The South Korean government currently mainly sells silver and gold to the United States, and also exports some goods such as pig bristles, textiles, and minerals.

He should earn more money for himself, because everyone looks out for themselves, and even families like the Kong and Song families would consider their own interests. In comparison, every penny Chen Guangliang earns is at least clean.

He certainly supported the war of resistance, but that didn't stop him from making money.

(End of this chapter)