A century-old wealthy family that rose from Shanghai

Ping An Bank Building, Des Voeux Road Central.

Before the completion of the new headquarters at 2 Queen's Road Central, Ping An Bank's headquarters will remain in the Ping An Bank Building on Des Voeux Road Central for at least another three years.

In the conference room of Ping An Bank, Chen Guangliang was having a meeting with the management of Ping An Bank in Hong Kong, including senior executives such as Ye Ximing, Zhang Shounian, and Li Hongsheng.

Li Hongsheng reported: "By the end of 1947, Ping An Bank's deposits amounted to HK$5020 million and US$800 million. Our Hong Kong dollar deposits are approaching those of the Bank of East Asia, and we expect to surpass them by the end of this year."

The so-called Hong Kong dollar deposits are naturally not Chen Guangliang's personal direct deposits, while the US$800 million deposits belong to "the shareholders of Ping An Bank in Shanghai"; in fact, they are also Chen Guangliang's property. Originally, it was US$1000 million, and then US$200 million was spent to purchase more than 3 taels of gold.

Chen Guangliang currently possesses over 17 taels of gold, a unit established in Hong Kong.

Chen Guangliang then immediately instructed: "This year, the number of entrepreneurs setting up factories in Hong Kong has increased, and Ping An Bank continues to prioritize industrial loans, which is crucial. We need to understand that Hong Kong is poised to become the next Shanghai, and the development of its industry and commerce is inevitable."

"Ok"

Everyone agreed.

Ping An Bank in Hong Kong achieved rapid development after the war, thanks in no small part to two crucial strategic moves:

First, while other banks were struggling with deposits, especially small deposits (due to a lack of loan channels), Ping An Bank aggressively attracted deposits from the market.
Secondly, while other banks were struggling to find ways to secure loans, Ping An Bank increased its support for Hong Kong factory owners.

Both of these important moves came from Chen Guangliang, which was based on his optimism about Hong Kong's future; while other banks had not yet reacted.

With the influx of mainland businessmen investing in Hong Kong starting this year, Ping An Bank has gained an even greater advantage, surpassing Bank of East Asia to become the leading Chinese-owned bank, a move that is likely to happen within the next year or two.

Then, Chen Guangliang continued, "For Ping An Bank, the loan-to-deposit ratio is not a reference point. 90% is considered normal. Everyone knows the reason, so I won't go into details. Therefore, Ping An Bank's main income in the future will come from loans and real estate trusts."

"Ok"

Everyone knows the reason, of course. The boss's $800 million in Ping An Bank is essentially a 'guarantee'; not to mention, there is also a large amount of gold stored in vaults of Ping An Bank, HSBC, and other banks.

Last year, Ping An Bank made a profit of HK$175 million, which was a result of the policies implemented by Chen Guangliang.

After the meeting.

Ye Ximing came to Chen Guangliang's office and said, "Boss, the gold price at the Gold and Silver Exchange has reached HK$300 per tael. The gold speculation craze has fully taken off. Some Shanghai merchants who came to Hong Kong to seek refuge have joined the ranks of gold speculators because they have nothing to do."

Ping An Bank is a director of the Chinese Gold & Silver Exchange Society and has always had brokerage business in this area.

The reason for this concern is that Chen Guangliang had previously acquired a large amount of gold.

Chen Guangliang said, "Gold in the United States costs $35 per ounce, which is about HK$150 per tael. But now gold in Hong Kong is being speculated up to HK$300 per tael, which is quite a strange thing."

Ye Ximing nodded and said, "Such fluctuations are possible, but gold is generally much more expensive than in New York and London. Fortunately, the Hong Kong government controls the import and export of gold, otherwise it wouldn't be able to maintain this price."

Chen Guangliang laughed and said, "Can we control it? As far as I know, there are Cantonese gold merchants who import gold from South Africa, India and other regions, then go to Macau, and finally smuggle it to Hong Kong. As long as the price of gold rises, they can cash out at a high price in Hong Kong. So essentially, this is a financial showdown between Cantonese merchants and Shanghai merchants."

Ye Ximing was taken aback. How could he see so clearly? He immediately said, "It's a pity that those Shanghai merchants are still unaware. They're getting more and more carried away with the speculation and have no idea who the winner is! Fortunately, you, boss, see things clearly and have the goods in hand, so you don't have to worry about the tricks of the Cantonese gold merchants."

Chen Guangliang said, "Of course I understand, and I plan to add fuel to the fire. So, you arrange for Ping An Bank to also speculate in futures, but just to make a show of it for everyone, without investing too much. After the price is driven up completely, I will cash out the physical gold from the market."

This means that Ping An Bank has also been drawn into this 'gold war'.

"Okay, I'll arrange it right away and report back to you promptly."

The matter was of great importance, and Ye Ximing had to be careful.

However, he didn't know how much the boss meant by "inflating"—was it 400? Or 500?

He doesn't need to know so much; he can just do it himself.

After Ye Ximing left, Chen Guangliang, with an expression of smugness reminiscent of Zhuge Liang, seemed to have foreseen everything.

In the previous life, during this golden age, many Shanghai merchants went bankrupt, including the extremely wealthy "Little Hartung (adopted son)"; while Cantonese merchants made a lot of money by purchasing goods cheaply overseas and selling them at high prices in Hong Kong, such as Hang Seng Bank, Liu Chong Hing Bank, and Bangkok Bank of Thailand.

Now, Chen Guangliang is naturally "profiting from both sides," meaning no one else can make a big profit; only he can.

Chaozhou merchants imported gold from overseas to Macau, which was actually intended as tribute to the people of Macau. They then had it minted into gold for the gold and silver exchange in Macau and smuggled to Hong Kong.

They typically inflate prices and then look for opportunities to sell. To stay informed, they even equip their smuggling ships with radio waves for communication.

Of course, the price of gold in Hong Kong is also closely related to the price of gold in Shanghai and Guangdong. Due to the war in mainland China, the Nationalist government prohibited the free circulation of gold, so the price of gold on the black market was getting higher and higher.

The Chinese Gold & Silver Exchange Society, Ma Sha Street, Sheung Wan, Hong Kong.

There are armed Indian guards here, and only gold trading members are allowed to enter. Currently, the Hong Kong Gold and Silver Exchange has a total of 197 member units.

Not only can you trade gold here, but you can also trade dollars, as well as US dollars, Japanese yen, Saigon paper, Philippine pesos and Mexican gold coins. Trading of gold bars and other currencies can be conducted simultaneously on both sides of the exchange.

Stepping into the trading hall, you'll find a spacious circular atrium of 200 square meters. In the center are the floor operators from each member unit, and telephones are hung all around for communication with the outside world.

The first and second floors of the courtyard are connected, and people on the second floor can look around from the railing.

The trading method is relatively simple. Someone stands in the middle of the courtyard, representing the need to buy or sell. Raising their palm and bending it inward means buying, while bending it outward means selling.

As for the price, only the last two digits are usually quoted, because 100 taels of gold are considered one lot; assuming the current price is 301 yuan per tael, then the price would be 30100.

Once the buyer and seller reach an agreement, they immediately exit the trading room and each party records the transaction in their notebooks. The Gold and Silver Exchange also has a registrar, forming a three-party registration. Settlement is not required immediately; the rule is to settle within three days.

Therefore, if A buys at 301 and sells to C at 302 within three days, then A makes a net profit of 100 yuan per lot, plus commission; and the next transaction is the transaction line between B and C.

"Mr. He, Ping An Bank has been trading contracts these past few days. It seems they've also started speculating in futures!" A Hang Seng Bank employee quietly approached He Shanheng and reported.

He Shanheng, from Ping An Bank, was immediately struck by the news.

He certainly knew about the bank of this "new richest man in Hong Kong," and that their subsidiary, Dachang Trading, had always been steadily outpaced by Global Trading, to the point that it was barely able to operate.

Now that Ping An Bank has joined the gold futures trading, this is a great opportunity for 'revenge'!
"Okay, continue to observe them!"

"it is good"

I'm not afraid of Ping An Bank winning, I'm afraid of Ping An Bank not playing!
At this time, Hang Seng Bank had already cooperated with Luo Bao, He Xian and others in Macau, and could import cheap gold from Macau. They would apply for 2000 or 3000 taels each time, and then take advantage of the high market price to cash out.

Gold prices are low overseas, while they are high in Hong Kong and mainland China, creating a significant profit margin.

At this time, the idea of ​​the Cantonese merchants was to continue to drive up the price of gold and bring in more Shanghai gold traders to join the speculation.

Ping An Bank's involvement in gold futures trading was quickly noticed by some people, and everyone was overjoyed; with Chen Guangliang's involvement, Shanghai businessmen were bound to join in.

Unbeknownst to them, Ping An Bank's actions were all a ruse. They quickly entered and exited the market, creating the appearance of busy trading, but in reality, they made very few profits or losses. In fact, the Hong Kong Gold and Silver Exchange quickly formed three factions: the Shanghai faction, the Guangdong faction, and the Chen Guangliang family.

Chen Guangliang, however, was aiming to take everything and had no sympathy for the speculators from Shanghai.

"Boss, this is Global Trade's year-end bonus plan for last year. Please take a look!"

Wu Hao handed Chen Guangliang a stack of documents with a broad smile, showing that he was in a good mood. In 1947, Global Trade made a lot of money again and expanded its business.

Chen Guangliang turned around and asked, "Is there no profit-sharing plan?"

Wu Hao immediately said, "This year there will be no profit sharing, only generous year-end bonuses. Everyone agrees that reinvesting the money earned by Global Trade is a very wise choice."

Chen Guangliang smiled and asked in return, "Really?"

"It's absolutely true, we've conducted a survey to gather everyone's opinions!"

"Yes, then everyone's idea is correct."

Entering the office, Chen Guangliang continued, "By the way, Manager Chen from Vitasoy will be visiting you later. I've asked Vitasoy to prepare to invest in a juice factory in Thailand, and Global Trade will be able to help with that, since you're more familiar with the business there."

Chen Guangliang played a significant, even decisive, role in the development of every undertaking.

Vitasoy's business currently consists only of soy milk powder, milk candy, and bottled soy milk. It's time for them to expand, given that this is a 20-year-old company. Therefore, Vitasoy's next foray into the 'soft drink' or 'juice' industries could be 'soft drink' or 'juice'.

Thailand has abundant fruit resources, and Vitasoy could invest in factories there to sell its juice to Southeast Asia and the Far East.

Wu Hao said with a smile, "We've already made contact and will guarantee to provide them with the most familiar Thai guides!"

"Yes, we're all sister companies, so it's necessary to help each other out!"

"Ok"

Global Trade's business has expanded, but many of these businesses could also be done by its sister companies, such as opening a juice factory. Originally, Global Trade could have made investments, but Chen Guangliang chose to let Vitasoy take charge.

In the morning, Chen Guangliang finalized the year-end bonus plan at a global trade conference.

Employees who have worked for a full year will receive a minimum of 15 months' salary, which I believe everyone will be very satisfied with.

Then, Chen Guangliang emphasized: "The money earned by Global Trade will continue to be invested in our properties in the trading regions. This is a long-term plan for the future."

"Yes"

For example, in Thailand, Global Trading mainly deals in glutinous rice, regular rice, and dried seafood. Therefore, Global Trading would purchase land locally to build warehouses, properties for office use, and land to build employee dormitories, etc.
Basically, each regional trading branch will purchase a large amount of property.

Next, everyone discussed business-related issues.

Chen Guangliang then offered another guiding light: "While developing trade with the mainland, we must consider the future direction of trade. Given the current domestic situation, we may have to end trade with the mainland within two years. How our global trade sector should cope with the loss of this market is something we have been constantly considering!"

Upon hearing this, everyone immediately understood that the country would be taken over by a new regime within two years, which would likely disrupt trade.

One person said, "Currently, we have already developed in Southeast Asia and Japan, so in the next two years, we will naturally further strengthen trade with Southeast Asia and Japan."

Someone suggested, "Australia and New Zealand are also good options; there are many products worth trading there."

Others said, "It's also possible to go even further, to the Americas."

Chen Guangliang summarized: "In short, we will expand outward step by step, be prepared to lose the mainland market, and what remains is the joint efforts of all employees."

Currently, Chen Guangliang holds slightly over 70% of the shares, while the remaining shares are held by 200 other shareholders.

With this shareholding structure, everyone is a shareholder of this trading company, which naturally leads to its active development overseas.

After the meeting, Chen Guangliang called Yang Xiaohu to his office.

"I plan to put you in charge of Guangdong's trade business. Once you're there, you need to actively familiarize yourself with the routes between Guangdong, Macau, and Hong Kong. I predict that even if the new regime comes to power, it won't cut off trade between Guangdong, Macau, and Hong Kong, so you'll be in charge of this job from now on."

Yang Xiaohu is already 30 years old this year, and under Chen Guangliang's guidance over the years, he can be entrusted with important responsibilities.

"Boss, the current governor of Guangdong Province is Song Ziwen, and I heard he's been making a lot of arrests."

"Well, before you win, don't contact the other faction. Just focus on doing business."

Chen Guangliang naturally knew that Song Ziwen was in Guangdong Province. Song Ziwen even wrote a letter hoping that he would visit his old friend. Chen Guangliang also replied, hoping to meet in Hong Kong someday.

If all goes well, we should be able to meet in Hong Kong next year!

When Song Ziwen took charge of Guangdong Province at this time, he was actually leaving Chiang Kai-shek a way out, namely, to divide the country along the Yangtze River.

What are you thinking? Dividing the country is shameful.

If global trade companies are offering generous year-end bonuses, then global shipping companies naturally can't lag behind.

Currently, Global Shipping has a total of 8 ships with a total tonnage of over 5 tons. Chen Guangliang is considered one of the largest Chinese shipowners in Hong Kong.

"Boss, everyone's idea is to buy another ship and continue operating the routes between Shandong Province, Japan, and Hong Kong. We won't be distributing dividends this year," Zhao Tieyi said enviously.

One of the ships in the Global Shipping Partnership is an old ship that is forty years old, but it is very profitable. It runs routes between Weihai, Shidao, Japan and Hong Kong, which is very lucrative. It earns about the price of a second-hand ship after just two trips.

Now one ship isn't enough; we need two.

Chen Guangliang said, "Do you have a target yet? This route will probably stop making money in a little over a year!"

Zhao Tieyi nodded and said, "Yes, it's a 1,000-ton ship that's over 30 years old. The asking price is HK$600,000."

The price of second-hand ships has also increased significantly!

In his previous life, Bao Yugang bought his first 8700-ton second-hand ship in 1955, which had already appreciated to $60, or 240 million.

Therefore, this ship is also an asset that appreciates in value.

"Okay, but continue to avoid operating under the name of TransWorld Shipping."

"clear"

It is not affiliated with Universal, but is managed by Universal, mainly to avoid trouble.

Global Shipping is still quite profitable, but Chen Guangliang has no plans to expand his fleet for the time being. He intends to expand in the early 50s, taking advantage of the shipping downturn. Then, during the Korean War, the Far East will inevitably face a shipping shortage, allowing him to make a fortune. Of course, he's not taking any risks. (End of Chapter)