A century-old wealthy family that rose from Shanghai

Time flies, and it's already April (1949).

The Hong Kong Gold and Silver Exchange is bustling with activity, with gold futures trading volume continuing to surge. The large-scale gold trading by Shanghai gold speculators has shocked Guangdong gold speculators, as if nobles had come to a small town.

Upon entering, the clamor of "gold speculation" in the hall hit me like a heat wave blowing from the desert.

Looking down from the second floor through the railing, in the courtyard of about 200 square meters, more than a hundred gold traders dressed in dark yellow vests and uniforms, like Spanish bullfighters, wandered around the center of the hall, searching for their prey.

Around the courtyard, against the walls, were a dense array of "hotline phones." Each telephone operator held a microphone and constantly reported the rise and fall of gold prices on the spot to their boss, while also continuously gesturing to the traders in the market to promptly convey the boss's instructions.

On the other end of the hotline, the connection is usually direct to the offices of the owners of gold or silver shops. These owners are not only concerned about the gold market in Shanghai and Guangdong, but also in London and New York, and some even have secret dealings with their peers.

In the gold trading industry, there is a saying that "information is the lifeblood of a gold shop owner." The slightest negligence can have serious consequences. Gold and silver shop owners are busy every day inquiring about all kinds of relevant information and analyzing the market.

"First-hand information: The Hong Kong government has cancelled the free trade of gold and will no longer approve imports. Moreover, starting in July, the Chinese Gold & Silver Exchange Society will no longer be allowed to use 99% gold and must use 95% gold (containing 95% gold)."

"With three months to go, gold prices are bound to surge!"

As the news spread, gold prices in Hong Kong became even hotter.

Due to the war in mainland China, the price of gold in Hong Kong had already climbed to over HK$500 per tael, and now it continues to rise.

Ping An Bank Building.

Chen Guangliang sat in his office, processing some documents. As his business grew, his workload increased considerably. Because he was still very young (39 years old), he also did a lot of work on the details of management.

Ye Ximing, the deputy general manager of Ping An Bank, rushed in and reported, "Boss, the Hong Kong government has cancelled the free trade of gold and will no longer approve imports. Furthermore, starting in July, the Chinese Gold & Silver Exchange Society can no longer use 99.9 gold; it must use 95.9 gold (containing 95% gold)."

Chen Guangliang looked up and said, "It seems that the price of gold at the Gold and Silver Exchange is going to rise to 600 or 700!"

Originally, he planned to cash out a portion of his shares when the price reached HK$500 per tael, but he found that the price had already exceeded HK$500 per tael in January, so he decided not to cash out, since there was still time.

Moreover, he discovered that the transaction volume at the Gold and Silver Exchange was enormous, so there was little problem in cashing out his 18 taels of gold.

Ye Ximing nodded and said, "Yes! But I'm worried that the rampant smuggling of gold in Macau might be an opportunity to cash out and thus drive down gold prices. So, I've already arranged for people to monitor travel between Hong Kong and Macau, and they can report back to us as soon as there's any news."

Compared to other "Shanghai-style" banks, Ping An Bank has been in Hong Kong for 15 years, so there's no reason for them to be unfamiliar with the local environment.

Chen Guangliang said confidently, "Of course we need to monitor that too, but as soon as the price reaches HK$600 per tael, we will immediately cash out. Moreover, at this time, the Cantonese gold speculators will definitely drive up the price of gold first and then prepare to cash out, so as long as we are faster than them, we can take advantage of their momentum."

For Cantonese gold speculators like Hang Seng Bank, Liu Chong Hing Bank, and Pangu Bank, gold needs to be imported from overseas to Macau first, and then smuggled from Macau to Hong Kong, which takes a long time.

On the contrary, Ping An Bank's gold is stored in the vault of the Ping An Bank Building and can be delivered at any time.

"it is good"

Ye Ximing then left. He is now in charge of Ping An Bank's 'gold trading business' and serves as the vice chairman of the Chinese Gold & Silver Exchange Society, while the chairman is He Shanheng of Hang Seng Bank.

Hang Seng Bank.

He Tian said happily, "I never expected this! After I impulsively applied for 2 taels last week, I applied for another 3 taels, and this good news came this week. It seems we can make a profit this time!"

Normally, He Shanheng would ask him to apply for gold imports, and he would usually apply for 2000 or 3000 taels. Unexpectedly, this time he had a sudden whim and ended up accidentally getting the job done.

He Shanheng also became slightly agitated. They imported gold from Macau, but in reality, they imported it from He Bao (a Portuguese man) in Macau, because the import of gold from Macau was also monopolized by the Portuguese, unless it was smuggled.

However, Macau's gold importers also need the cooperation of Hong Kong gold dealers, otherwise they cannot sell their products, so it is a cooperative relationship.

However, it is certain that the gold import prices of Cantonese gold speculators such as Hang Seng Bank, Liu Chong Hing Bank, and Pangu Bank are closely related to the prices in the Hong Kong market, and cannot be related to overseas gold prices. The majority of the price is paid by the Portuguese government.

Ho Sin-hang immediately said, "I have already told everyone to drive up the price of gold in the Hong Kong Gold and Silver Exchange. Once our gold arrives in Hong Kong, we can immediately cash out at a high price. Based on the amount of gold we currently control, we are already close to controlling the gold price in the Hong Kong Gold and Silver Exchange."

After saying this, He Shanheng became somewhat confident.

He had been managing gold trading for Hang Seng Bank since 1947, and the following year he became the chairman of the Chinese Gold & Silver Exchange Society. Now, Hang Seng Bank's methods have reached a level that is close to controlling the market.

He Tian asked, "What about Liao Chuangxing, Pangu Bank, and Dasheng Bank?"

He Shanheng nodded and said, "Let's work together and then dump a batch of physical gold at a price above HK$600 to those gold speculators in Shanghai. Once we've cashed out all of it, the price of gold will inevitably plummet again; after we import gold again, we'll slowly push it up and dump it to those gold speculators in Shanghai time and time again. We'll make a steady profit, but whether they make a profit is another matter."

"Ha ha"

Everyone laughed.

There were many gold speculators from Chaoshan, such as Liao Baoshan, Chen Bichen, and Ma Jincan. Although they were not as powerful as Hang Seng Bank individually, they used their unity to get Hang Seng Bank to join forces with them. Of course, they were all Cantonese, and their target at the time was gold speculators from Shanghai.

Liao Baoshan of Liao Chuangxing Bank picked up the telephone line.

"The ship is already at sea and will arrive in two days."

Liao Baoshan hung up the phone immediately, an excited expression on her face.

This is a method employed by the Chaoshan Chamber of Commerce: by setting up radio waves on ships, they can not only know when ships importing gold will arrive, but also obtain firsthand information about the Shanghai gold market from the sea, and then transmit it to Hong Kong.

Through these advanced methods, they obtain information much faster and more comprehensively than Shanghai-based gold speculators; not to mention, they also control channels for smuggling gold.

Chen Bichen of Pangoal Institution also picked up the phone and then smiled.

Immediately afterwards, Chen Bichen dialed the China Gold & Silver Exchange Society and instructed his subordinates to "raise" the price of gold and cooperate with everyone.

With Hang Seng Bank and other gold speculators from Chaoshan joining forces to drive up gold prices, unsuspecting Shanghai gold speculators followed suit, hoping that gold prices would skyrocket.

At night, gold speculators from Chaoshan gathered at an upscale restaurant in Wan Chai, including Chen Weinan, Chen Bichen, Liao Baoshan, and Ma Jincan.

Everyone clinked glasses and exchanged toasts, their faces beaming with victorious smiles.

Ma Jincan, the most senior member, said, "It is expected that the price of gold will reach 600 by tomorrow morning, which will stabilize for a day and a half. We can then arrange to cash out the day after tomorrow afternoon. This time, we will all make a considerable profit. Of course, Hang Seng Bank will be the most successful, as they have close ties with Macau's Ho Po."

Liao Baoshan laughed and said, "We are all Cantonese, so it doesn't matter who earns more. Besides, the Shanghai gold speculators are all big shots with great wealth. When they come to Hong Kong, they are our gods of wealth."

"Ha ha"

Everyone laughed. Once upon a time, Shanghai was the dream place for Cantonese people to make a fortune. There were beauties everywhere, wealth was as high as mountains, and power was everywhere. It was simply a 'paradise' on earth.

Now, wealthy Shanghai residents are flocking to Hong Kong like stray dogs, crammed into tiny rooms, living in constant fear and anxiety.

At this moment, people from Guangdong finally breathed a sigh of relief—you've finally met your match!
During the meal, Chen Weinan said, "I heard that Chen Guangliang's Ping An Bank is also involved in gold speculation. I wonder if he will be fooled?"

Liao Baoshan said, "There is speculation, but it's only symbolic. Ping An Bank isn't very active in the gold and silver exchange. But to be honest, Ping An Bank doesn't seem like a Shanghai-based bank at all. They came to Hong Kong to develop 15 years ago, and after the war, they quickly surpassed the Bank of East Asia to become the largest Chinese-owned bank in Hong Kong. Chen Guangliang's financial skills are truly remarkable!"

As a novice banker, Liao Baoshan had great admiration for Ping An Bank. Ma Jincan of Tai Sang Bank nodded in agreement, saying, "We summarize Ping An Bank's success in two points: first, they aggressively attracted deposits after the war; second, they strongly supported factory owners after the war. Other Chinese-owned banks have not achieved these two things. Now it seems that Ping An Bank had great confidence in Hong Kong, so its success was inevitable."

As bankers, we can't help but admire Ping An Bank's actions over the past few years!
Chen Weinan said regretfully, "If Ping An Bank were involved in gold speculation, we might be able to make a killing off them. I heard that Chen Guangliang is the richest man in Hong Kong, and his wealth has surpassed that of Ho Tung. If we could get a share of his wealth, it would be enough for everyone to eat their fill!"

When Chen Guangliang's wealth is mentioned, everyone can't help but feel envious. He was a leading Chinese businessman who dominated Shanghai in the 1930s, and it is said that his wealth is worth hundreds of millions of Hong Kong dollars.

The following day, the price of gold in Hong Kong's gold and silver trading industry was indeed driven up to HK$600 per tael.

At this point, the price of gold was like a runaway horse, rising to even higher prices; and, even without the Cantonese gold speculators raising prices too much, the Shanghai gold speculators were already frantically increasing their bids.

Perhaps there's a psychological element to this – these Shanghai gold speculators, having left their hometowns, can only temporarily forget the extravagant lifestyle of Shanghai through such thrilling speculation.

Ah Bao is a Shanghai-based gold trader employed by Ping An Bank. He speaks fluent Cantonese and is indistinguishable from local Hong Kongers.

But after the price of gold on the gold and silver exchange reached 600 yuan, he immediately contacted the telephone operator, who promptly made a call. Just a few dozen seconds later, the operator gave him a clear signal, the same instructions as the previous night.

Cash out!

Once Ah Bao received a good signal, he immediately squeezed through the crowd and arrived at the center of the courtyard.

Ah Bao stretched out his right hand and raised it high, palm facing outward, then bent it outward, which meant 'selling gold'.

One lot consists of 100 taels of gold, and the price is determined by hand gestures, but only the last two digits are entered.

A Bao's gesture showed a hand holding 60100 yuan worth of gold.

Subsequently, nearly ten people stepped forward as gold traders, indicating their willingness to buy.

Ah Bao quickly patted everyone on the shoulder, signifying that everyone had sold one unit. In less than a minute, transactions worth over HKD 50 had been completed.

After the transaction was completed, everyone stepped down and recorded the transaction in their notebooks, with staff from the Gold and Silver Exchange supervising and recording the transactions simultaneously.

Transactions here rely on reputation, just like at the Shanghai Gold Exchange. In this era, 'reputation' is highly valued, even possessing legal force. For example, Cheng Linsheng, who speculated in gold, ultimately had to sell his assets to repay his debts. Only Sister Song of the 'Seven Star Company' had to seek help from Du Yuesheng to resolve the issue when she tried to default on her debts.

Soon, Abao quickly completed the registration, returned to the scene, and seeing that the price was still above 600, continued to complete the sales task.

In one morning, Ah Bao sold nearly HK$500 million worth of gold, leaving everyone present stunned.

"Whose trader is shorting the market?"

"Exactly! Gold prices went up to HK$600 and then fell back down. It's really disappointing!"

"It seems to be a trader from Ping An Bank. I don't remember Ping An Bank being very active in the gold market?"

"Maybe they just wanted to sell some gold!"

During the midday market closure.

He Shanheng, He Tian, ​​and others were also discussing gold speculation in the office of Hang Seng Bank.

"What does Ping An Bank mean by this? Are they planning to short sell?"

After thinking for a moment, He Shanheng said, "Either they are preparing to short the market, or they are preparing to cash out their gold reserves. After all, this bank should have some gold reserves."

He Tian grew anxious and said, "We imported 5 taels this time. If Chen Guangliang takes the opportunity to short sell, it will have a huge impact on us."

He Shanheng nodded, pondered for a moment, and said, "It seems that those Shanghai gold speculators are not aligned with Ping An Bank. They will continue to buy in the market and will be the main force driving up prices. If all else fails, I'll have our Guangdong gold speculators also push up the price a little to create a supporting effect. We'll push it up again this afternoon, and then we'll sell our shares tomorrow morning."

"Well, that's all we can do. Hopefully, Ping An Bank will just make a big move this morning and back down this afternoon!"

Soon, the Cantonese gold speculators decided to hype it up again in the afternoon.

After listening to Ye Ximing's report, Chen Guangliang decisively said, "Continue this afternoon, and continue tomorrow as well. Let's try to sell 3.5 taels in two days!"

Although gold is currently experiencing a significant surge, it is also subject to large fluctuations. It is quite possible that it will fall below 500 yuan in this wave. These large fluctuations are what ignite people's enthusiasm for trading gold.

Ping An Bank had already detected the intentions of Guangdong-based gold speculators, so Chen Guangliang naturally wanted to take all the profits and sell off his holdings before everyone else.

Ye Ximing nodded and said, "Then we really have control over the gold and silver trade!"

In its previous life, Hang Seng Bank's weekly transactions of HK$3000 million were considered a form of control over the gold and silver exchange.

Ping An Bank is now preparing to sell 3.5 taels of gold in just two days, which is a direct attempt to suppress prices.

Chen Guangliang said, "It's not really about control. This time we suppressed the gold price, so we had to rest for a while. When the gold price rose to around 600 again, we cashed out as soon as possible. After doing this a few times, we completed our cashing out."

"Ok, I see!"

After Ye Ximing left, Chen Guangliang smiled. He made money from Shanghai gold speculators and stole wealth from Guangdong gold speculators. It was that simple.

Of course, the reason he was able to win was because he had long ago stored his gold in a vault in Hong Kong, and he knew the potential and timing of the decline in gold prices, as well as he had local information channels.

With nearly 18 taels of gold, it is expected to raise HK$1 million, while the actual cost is less than HK$4000 million.

"With the pound about to depreciate (this September), I need to exchange these Hong Kong dollars for US dollars."

At that time, Hong Kong possessed enormous amounts of foreign exchange and gold, with large quantities of foreign exchange, gold, silver, and other valuables brought in from the mainland.

Currently, the Chen Guangliang family's wealth is close to 1 million US dollars, making them truly top-tier billionaires of this era.

However, Chen Guangliang's business had not yet expanded to the world, so in the 1950s he needed to expand his business and truly become a world-class businessman.

Guangdong gold speculators were dumbfounded. The gold prices they had driven up hadn't even been cashed out before Ping An Bank drastically suppressed them. Shanghai gold speculators were also dumbfounded. They had bought heavily, only to find that their "leading" gold was being sold off in large quantities.

In just two days, gold prices rose to 600 yuan per tael before falling rapidly. By the time the Cantonese gold speculators wanted to cash out, the price had already fallen to 550 yuan per tael.

At this point, if Guangdong gold speculators continue to cash out in large quantities, Shanghai gold speculators would be foolish, knowing that gold needs to be shorted in the short term.

Ping An Bank's actions not only dashed the hopes of Guangdong-based gold speculators, but also served as a wake-up call for Shanghai-based gold speculators.

During this period, Ho Sin-hang of Hang Seng Bank, in his capacity as chairman, questioned Ping An Bank and received a clear answer—Ping An Bank would settle the transaction on a spot basis.

This led He Shanheng to admit defeat immediately!
However, the Cantonese gold speculators had no choice but to continue cashing out, as their gold had already reached Macau, and they had to sell it. Of course, there were still profits, but not as high as expected; they were only a small portion, with Ping An Bank taking the lion's share.

Upon learning that the cash-out operation had been a complete success, Chen Guangliang smiled, having suddenly acquired nearly HK$2000 million.

Of course, everyone will soon drive gold prices back up to around 600, at which point he will cash out immediately; by August, he will have to cash out everything. (End of Chapter)