A century-old wealthy family that rose from Shanghai

Chapter 200 Shipping
In the office of Changjiang Real Estate, Chen Guangliang looked at the project information about Xiafei Road and fell into deep thought.

He originally purchased a total of 20 mu of land on Xiafei Road, spending about 14 yuan, which is equivalent to an average price of only 7000 yuan per mu; just over two years later, the price of these lands has risen to about 3.5 yuan per mu, an appreciation of 400%.

Of course, Chen Guangliang did not choose to sell the land, but instead invested 50 yuan to build a total of 50 high-end villas.

Why is it called a 'high-end villa'?

First of all, the land is definitely expensive, and Xiafei Road fully meets this requirement.

Secondly, the construction cost is about twice as expensive as the villas on Yuyuan Road.

Finally, these fifty houses also occupy a slightly larger area and can be used as independent houses.

According to the latest pricing of Changjiang Real Estate, the total value of this batch of villas is 155 million yuan, and once they are launched, the market will definitely be in short supply.

At this time, Chen Guangliang's idea had wavered, and he was considering using these villas as fixed assets to collect rent instead of selling them.

He has four ideas:
First, he currently has sufficient cash flow but lacks investment channels.

Second, he used to think that there would be an oversupply of housing in Shanghai, but now he believes that there may be an oversupply of housing in the Chinese area, but there will definitely not be an oversupply of housing in the concessions, because the concessions cannot expand and are very popular among wealthy people across the country. Many of them are warlords and bureaucrats who came to Shanghai for retirement after the fall of the warlords and bureaucrats. They will definitely choose the concessions rather than the Chinese area.

Third, the rental income was stable and could recover the investment. He calculated that the houses could have been rented out starting in the second half of 1931. If he sold them in the first half of 1937 (or at the latest in 1941), he would have essentially recovered his investment and the price could have increased significantly, making this a very high rate of return.

Fourth, having a lot of cash flow in hand always makes people feel uneasy.

Thinking of this, Chen Guangliang has decided to cancel the sale of this batch of houses.

Considering the changes in Shanghai's real estate over the past three years, Chen Guangliang's role is still very significant. The number of construction sites has increased significantly, and the number of residential buildings has also begun to increase, which has greatly alleviated housing pressure.

To give a simple example, the transfer fee and rent have not increased significantly in the past three years.

Historically, Lu Xun recorded in this year that the purchase price of an ordinary house had risen to 800, the rent had risen to 80 per month, and the rent of the attic was 20 per month.

At present, the transfer fee in Shanghai is between 500 and 600, and the rent of a floor on Yuyuan Road is between 40 and 50 (the rent has hardly increased).

If the situation in the concessions is like this, the situation in the Chinese areas will only be worse!

After a while, Chen Guangliang came to the conference room and all the management were already seated.

"I have decided to cancel the sale of the Xiafei Road project and will rent it out in the future."

Everyone agreed.

Guo Deming: "Renting is a good option. After all, we have already sold so many properties and have accumulated a lot of capital."

Lu Yuantai: "Yes, the villas on Xiafei Road are all high-quality. They are easy to rent, and the rent is very competitive."

Yan Kuan: "The boss's layout is perfect, combining sales and leasing. This way, Changjiang Real Estate will not only operate commercial real estate (Shangri-La Hotel), but also lease and manage properties."

Unconsciously, Changjiang Real Estate has become a "talent base". The staff originally recruited were basically at the technical college (college) and university level, and now they have been trained and matured.

"Okay, that's it for now. Our current priority is to complete the project at hand. However, if there's suitable land in the concession, we'd consider acquiring it, but it has to have good development value."

"Yes"

Everyone is very enthusiastic!
At this moment, Chen Guangliang also felt relieved. He used to think that it would be safe if he sold all the real estate, but he didn't realize that it was the large amount of cash he had recently that made him feel insecure.

Now that he has made such an arrangement, his property assets have become abundant:
First, the Shangri-La Hotel. This involved renovating the original four-story building (the Grand China Hotel) and redeveloping an eight-story structure for an additional 75 yuan. The total value of the property is at least 150 million yuan. Of course, Cheung Kong Properties only holds a 55% stake.

Second, the property on Xiafei Road is worth more than 150 million.

Third, there are scattered properties, including those in Yuyuan Road and Xincheng Garden, which are worth around 400,000 yuan; the Chen family residence on Weihai Road is worth 300,000 yuan.

In total, Chen Guangliang has nearly three million in property assets.

In addition to these property assets, Changjiang Taxi's 420 vehicles are also heavy assets. Even if 150 of them are sold later, there will still be 270 vehicles, with a value of about 270 million yuan.

But in fact, these two heavy assets account for less than half of his assets, or about 40%.

So how should he invest his huge assets next?
The stage of making quick money has passed. Next, we should consider investing more in real industries, otherwise, what’s the difference between us and misers!
mid-December.

Chen Guangliang founded two companies, Global Shipping and Global Trade, at Puyi Building, No. 10 Chuanshu Middle Road, and invited many friends to join him.

The Puyi Building is an eight-story Western-style building designed by the renowned British firm of Deutsche Bank and built by American firm Puyi Real Estate. Upon its completion in the early 8s, the Puyi Building became the headquarters of a prominent shipping company.

Global Shipping chose this place as the headquarters of its shipping company, naturally in order to recruit talents and make it easier to communicate with peers.

He also established a shipping company and invited many friends from the shipping industry to join him, including Yu Qiaqing, Qian Xinzhi, Zheng Liangyu, Hong Yanbin, Chen Shuntong and others.

When everyone saw that Chen Guangliang had rented half a floor of an office building, they couldn't help but ask.

Qian Xinzhi asked, "Mr. Chen's attitude suggests he's planning to make a big splash in the shipping industry!"

He was not only a senior government official, but also a tycoon in Jiangsu and Zhejiang, owning the Zhongxing Steamship Company.

Nowadays, Chen Guangliang is already an acquaintance of many Jiangsu and Zhejiang financial groups, so it is not surprising to know him.

Chen Guangliang said generously, "We are indeed planning to purchase several ocean-going vessels to develop our shipping business. I also believe that the Nanjing government will also be interested in retaking the shipping routes occupied by foreign powers. As a private enterprise, we should strive to become stronger."

When he speaks now, he always likes to speak from the perspective of the country.

Everyone cheered, but no one knew what they were thinking. After all, they would be competitors in the future!

Especially Yu Qiaqing, his Sanbei Shipping Company and others, are the first among domestic private enterprises.

Afterwards, Chen Guangliang invited everyone to become directors of Global Shipping, and those who were willing to invest could do so by investing in "ships".

But it was clear that while everyone had agreed to serve on the board of directors of Global Shipping, they had declined to become shareholders. Chen Guangliang had considered this, but didn't mind it. After all, he was just a novice in the industry. Everyone thought that running a shipping business was no easy task, and Chen Guangliang's prospects were slim.

In fact, Chen Guangliang is somewhat self-aware, but he still chooses to try because his capital is strong enough; secondly, Chen Guangliang regards ships as movable assets that must be developed, and he will develop them vigorously.

During this time, Chen Guangliang said to everyone: "Everyone, please help me pass on a message, just say that Global Shipping is interested in purchasing ocean-going ships!"

"no problem"

Of course, the ships were all purchased second-hand from foreign companies. This is how Chinese capital developed.

After everyone left, Chen Guangliang called all the staff together and held a meeting.

Global Shipping and Global Trade are currently still working together, and the initial employees include ordinary staff, finance and other positions transferred from Chen Guangliang's other companies, as well as professional talents introduced by friends.

For example, Hong Yanbin introduced him to Zhao Tieyi, who was proficient in shipping, from China Merchants Group. Zhao Tieyi not only had a high level of education, but was also the deputy section chief of the Shipping Section of the Transportation Section.

This time, Yu Qiaqing did not play any tricks. He introduced to Chen Guangliang a talented person named Wu Hao who used to work in customs. He was good at customs work and trade matters.

"First and foremost, we will continue to recruit talented individuals to expand our company system, so everyone should develop a positive attitude towards salary. Private enterprises are better than public institutions in that they allow you to showcase your talents and abilities and achieve equal exchange."

Zhao Tieyi and Wu Hao originally thought that the boss was "hitting them", but they found out that the boss was actually saying that public institutions rely heavily on connections, while global shipping and global trade allow them to better display their talents.

"Secondly, let's discuss the current shipping and trade situation. Everyone is welcome to express their opinions."

Everyone knew that the boss was testing everyone's abilities.

Of course, there are a few who are just finance and clerical staff, and they can't offer any work.

Then, Zhao Tieyi took the lead and said:

"Let me talk about domestic shipping. It's generally divided into two modes: inland waterways and ocean shipping. Unfortunately, both are essentially monopolized by foreign capital. British companies like Jardine Matheson and Swire, French Mail Steamship, and Japan's Osaka Merchants Steam Navigation Company all have a piece of the pie. However, the company is plagued by internal strife and its many compradors embezzling profits, resulting in a chaotic management situation. It's difficult for Chinese capital to get a piece of the pie, mainly because foreign merchants enjoy privileges at these ports and customs. However, the Nanjing government is interested in developing maritime shipping, and perhaps better policies will be introduced later."

In fact, Chen Guangliang had also investigated these things and naturally understood the reasoning behind them.

He developed shipping with three key points in mind:

First, buying a ship was cheapest in recent years, after all, it was the Great Depression;
Second, the Nanjing government intends to develop maritime transport and will introduce policies that are very favorable to Chinese businesses next year, and will also reclaim many shipping and customs rights.

Third, the ship is a portable asset. Shanghai to Hong Kong can be reached in as little as 42 hours. For this reason alone, Chen Guangliang had to buy a ship for future escapes.

Chen Guangliang also knew that in the 1930s, inland waterway transportation had the "shipping king" Lu Zuofu, who drove many foreign merchants out of the Yangtze River transportation; and in ocean transportation (generally referring to the coastal areas of China), there were fleets led by Yu Qiaqing, China Merchants Steam Navigation Company, Chen Shuntong, Xu Aizhou and others, who competed with foreign merchants.

He has his eyes on three routes: one is the northbound route from Shanghai to Qingdao, Tianjin and Yingkou Port; one is the route from Shanghai to Guangzhou Bay, Hong Kong and Vietnam; and one is the route from Shanghai to Hong Kong and Southeast Asia.

After everyone had expressed their opinions, Chen Guangliang spoke, "Over the next three years, we will continue to purchase seagoing vessels, add routes to the Chinese coast and Southeast Asia, and expand trade in these regions. Therefore, we need a large number of talented people to join us. I will continue recruiting, and everyone can do some market research first."

"Yes, boss"

the other side.

Yu Qiaqing returned to the Sanbei Shipping office and called his eldest son Yu Shunen.

"Do you think Chen Guangliang's high-profile move to get involved in shipping will have any impact on us?"

Although he was asking, his thoughts were self-evident.

Yu Shunen said, "Father, our Sanbei and Hong'an shipping companies are currently ranked high among Chinese companies, second only to China Merchants. However, when it comes to the coastal shipping routes of China, we are nothing. Why should we worry about their development of shipping?"

Yu Qiaqing was stunned for a moment, then laughed and scolded: "You don't know Chen Guangliang's ability. This kid is so young, but he has already earned nearly 10 million in capital. Now he is interested in shipping. How can this not affect us? Forget it, I won't tell you too much."

The business he runs is huge, but the funds are often tied up, and he is far less flexible than Chen Guangliang in using money.

Even more ridiculous things happened: in 1926, the civil war forced the company to suspend shipping. At that time, the visitors to Yu Qiaqing's office at the Sanbei Steamship Company were almost always creditors. Yu spent every New Year's Eve, putting on a smile and negotiating extensions, or using the trick of "changing tickets" to stall.

During the most difficult times, the daily "lost bills" reached a staggering 80 yuan, with interest compounded, and the debt kept growing deeper and deeper. When a major creditor came knocking on his door and he was unable to handle it, he would always pretentiously ask his eldest son, Shun'en, "Is the money from so-and-so ready?" Shun'en replied that it wasn't yet, and Yu would immediately lash out, "Why are you so disrespectful of your credit? I told you so long ago!" Sometimes, Shun'en couldn't stand it anymore and would even retort, exposing his father's deception. The two would then engage in a real quarrel, and the creditors, unable to bear the pain, would act as peacemakers for the father and son, offering to postpone the payment.

There were also some scattered creditors who would pester him all day long, so Yu had no choice but to avoid them. "The big ones hid in bathhouses, the small ones hid in theaters," these were the two sentences used by Shanghai people at the time to describe Yu Qiaqing's avoidance of debt.

So everyone knows that Yu Qiaqing is a big taxpayer, but few people know that he is now a "hollow boss" who even dared to cheat Chen Guangliang of his "commission" - when he registered Yong'an Bank first.

A few days later, Chen Guangliang was itching to show off his skills and published an article in the Oriental Daily - "The Great Winter of World Shipping is Coming."

In the article, Chen Guangliang used information obtained from special channels to provide evidence:
1929年5月英国船舶闲置量仅为38万总吨，1年后增至99万总吨；

世界不定期船运价指数由1929年5月109.2点跌至1930年5月的73.1点；
世界主要航线平均运价指数，1927年为128.2点，1929年降至113.6点，1930年4月和6月进一步降至89.7点和88.1点；
He then expressed his own opinion:

The shipping market depression caused by this economic depression will last for a long time, judging from the obvious increase in idle ships and the decline in shipbuilding output.

But in China, due to the different economic system, shipping will not be particularly depressed.

On the contrary, this is an opportunity for China Shipping to take back the excessive market share from foreign shipping companies.

If the Nanjing National Government intends to revitalize the national shipping industry, it can set up several shipping bureaus across the country to be in charge of inland and coastal routes and open up new routes.

For shipping companies, they can choose idle ships in Europe and the United States at a low price, thus reducing ship purchase expenses.
Once the article was published, it attracted huge attention.

The Nanjing government also spoke out immediately and said it would seriously consider this suggestion.

After all, Chen Guangliang would not really go all out in developing shipping. As long as the war was not over, he would not be able to invest too much.

So when he published this article, he actually hoped that the national shipping industry would rise as a whole, rather than him fighting alone.

At the same time, Chen Guangliang also needs to improve his social status and influence, otherwise it will be difficult to keep his wealth.

(End of this chapter)