Chapter 186: Wash Trading
Back at the tea house, Gu Yansheng called He Yun over.
He teased, “Now finding you requires calling several factories to know where you are. You’re busier than me. Looks like the time until successfully plotting to seize power isn’t far off.”
He Yun chuckled lightly and chided, “You’re the one saying that. Suddenly opening so many factories, and Bowen has to run around outside. If I don’t work hard, what if I delay you, Division Chief Gu, from making money? I can’t afford to offend you.”
“Drink some tea.” Gu Yansheng poured her a cup of tea. “How’s it going with Bowen? This trip has taken quite a while. Any difficulties?”
“No major difficulties. That side is close to the war zone, the situation is quite complex, so it takes a bit longer. He sent the agreed telegram from the post and telegraph office.” He Yun took a sip of tea and instinctively leaned in close to whisper, “After all, that side is close to… right? Need to investigate carefully.”
Gu Yansheng nodded. The forces in Anhui were indeed numerous. Just the ones he sent out numbered three groups.
“Hard work for him. What about you? Busy nonstop, right?”
“Not bad.” He Yun nodded. “The flour mill is already set up. This year’s new wheat hasn’t arrived yet, so the flour mill doesn’t take much time.
The cotton mill was newly taken over, so it does need some learning, but we’re directly acquiring it. Those old workers are still there, so production can proceed as usual. Plus, with several cotton mills competing against each other, I can tell if anyone’s playing tricks.
The repair shop has gang people watching it, so we basically don’t need to manage it. It didn’t cost much anyway.
The main problem we face now is that expansion has been too fast, and personnel can’t keep up. I mean management. We don’t lack workers.
Reliable people still need time to train and observe.”
Gu Yansheng nodded. “Train some people, delegate authority to them for operations. After all, you’re doing legitimate business. Don’t handle everything yourself. It’s too tiring, and there’s no time for it.
I still have something on hand that needs you to handle. Can you make time?”
He Yun hummed in agreement. “Sure, tell me.”
Gu Yansheng thought for a moment and said, “Ling Xianwen, who’s in charge in Nanshi now, wants me to help pull a few factories over there. This task must be completed. Go open a cloth factory and turn part of our produced cotton yarn into cloth to sell.
Doesn’t matter if we make more or less profit. We need to maintain a good relationship with Ling Xianwen.”
“Got it.”
“For any Jianghu difficulties, find Secretary Ma for help.”
“Okay.”
“One more thing. I’ve arranged for you to be a stockholder in a listed company, Yong’an Department Store, with a position in the finance department. This requires you to step forward formally.”
“Me? Yong’an Department Store stockholder?”
New factories were nothing new to He Yun, but a listed company stockholder? And Yong’an Department Store at that?
He Yun pointed at herself with wide eyes.
Gu Yansheng nodded and smiled. “No need to be so shocked. Calling you there is just a nominal position. This business is between me, No. 76, and some others. Making you the stockholder means you’re holding the stock for us, which is equivalent to holding No. 76’s money.”
Gu Yansheng explained the ins and outs of the matter. “No. 76’s people want to make money stock trading through Yong’an Department Store, but I value Yong’an Department Store’s foreign channels more. Once Yong’an Department Store is in our hands, our smuggling route will be completely opened up.
Procurement, transportation, receiving goods—no matter which country’s products, whether contraband or not, as long as it’s available for purchase in the concession, we can make it available for purchase all over China.”
“Understood.” He Yun now understood the importance of Yong’an Department Store. Before, they could only provide contraband like cotton yarn and medicine, but now the supply sources would be fully abundant.
“What exactly do I need to do?”
“Mainly keep an eye on finance, make sure no major problems arise, and get dividends on time. If the money’s fine, No. 76’s people won’t have issues.
If they have no issues, your position will be very secure.
Then, if possible, cultivate some of our own people in procurement and sales. It’ll make it more convenient for our organization’s business in the future.
We hold quite a few shares, and I’ll buy more next. You’ll be a pretty big stockholder too. Yong’an Company’s boss is Guo Linshuang. We won’t interfere in his operations. Arrange a few people, and he probably won’t interfere with you either.”
He Yun nodded immediately. “Don’t worry. Finance is my expertise. I’ll definitely do well. Then I’ll go to work tomorrow.”
Gu Yansheng chuckled lightly. “Go whenever. It’s to make you the boss, not to clock in daily. You don’t need to sit there every day. You’re a stockholder.”
He Yun thought about it. Yeah, that made sense. “Never been a listed company stockholder before. Not used to it.”
“Then get used to it slowly. It’s fine if our family produces a flour king and then a department store king. Take it slow, learn all their procurement and sales channels. It’ll definitely come in handy when the organization’s business grows big.”
“Good! Then I’ll head to Nanshi first to connect with Secretary-General Ling?”
“Sure, I’ll make a phone call for you.”
He arranged for He Yun to pick up the money tomorrow. Gu Yansheng called Wu Sibao and told him he’d be over shortly.
By the time he arrived, Wu Sibao and Ye Jiqing were already waiting eagerly at the entrance to welcome him.
If Gu Yansheng couldn’t pull it off, the whole thing would be dead.
Wu Sibao wanted to act as a market maker. He dreamed of running a big one. His heart was uneasy. With the deal unsettled, even meals didn’t taste good.
Ye Jiqing trusted the God of Wealth’s ability, but with things not finalized, she was still a bit anxious.
“It’s done.” Gu Yansheng got out of the car and immediately told them the most crucial details. He straightened his clothes and gave them a calm smile.
Wu Sibao burst into laughter. “Hahahaha, still gotta be you! Hahahaha, it’s done! Father is going to run a big one!”
Ye Jiqing smiled more reservedly, but her eyes sparkled. “As I said, in all of Shanghai, is there anything Mr. Gu can’t handle? Please come upstairs.”
“Please.”
Inside the room, Wu Sibao specially brewed tea to serve the meritorious official.
Gu Yansheng sat down and said to Ye Jiqing, “Bought one percent of shares from him, 91 silver dollars and 8 jiao 8 per share, 31,250 shares, over 2.8 million silver dollars.”
“Yong’an Department Store’s stock price isn’t that high, is it?” Ye Jiqing had been following Yong’an Department Store these past couple days.
“Sister-in-law, you don’t understand this.”
Wu Sibao, the stock trading expert, explained the reason to her. “Can’t calculate it by stock price. Otherwise, why negotiate with him? Just buy directly on the stock market? Sweeping up large quantities would send the price skyrocketing.”
Ye Jiqing nodded as if she understood.
Wu Sibao handed over coffee and smiled. “So, can we start acting as market makers now?”
“About time.” Gu Yansheng took a sip of coffee and said, “First time, I’ll operate the market. The extra money we spent must be recouped. First release negative news to suppress the stock price. We’ll slowly take delivery of goods on the stock market with the remaining money. Once we’ve taken enough, release positive news to make a profit first. Future matters can wait.”
“Exactly what I want! Exactly! Hahahaha.” Wu Sibao didn’t care yet about making money on the stock market. First, he had to experience acting as a market maker.
Gu Yansheng continued, “Besides the money for acquiring this one percent stock, the rest needs to sweep up on the stock market. Operations might have some costs. Anyway, first suppress the stock price, collect chips. Once we’ve got enough, we’ll discuss how much each person invests, what proportion. How’s that?”
“All up to Mr. Gu.” Ye Jiqing had no objections.
“Sibao, tomorrow depending on the situation, I’ll give you the signal. Quietly take delivery of goods on the stock market.”
“Sure, no problem.”
The next day, the finance section of the concession newspaper reported on Yong’an Department Store’s abnormal stock price rally yesterday.
In the half hour before yesterday’s close, the stock price actually rallied by 8 silver dollars. Not a small amount—equivalent to stockholders making 10 percent profit in one day.
Yesterday the stock exchange was buzzing over this, thinking there must be positive news. Just that major investors knew, while retail investors didn’t.
Now stockholders were all waiting at the exchange for opening, flipping through newspapers but finding no positive news from Yong’an.
So why did it rise?
Could it be the main force preparing to rally and unload?
Then they could ride the coattails.
Many people holding money were waiting to see how Yong’an’s stock price would open.
Yong’an stock is ten shares per lot, so buying one lot costs eight or nine hundred silver dollars. Not cheap.
“Opening, opening!”
Yong’an’s stock price continued rising right after market open.
“Rising, rising!”
“Definitely positive news! Main force is hiding it!”
“Buy buy buy!”
Retail investors scrambled for chips, and major investors followed.
They’d checked—no positive news from Yong’an. But yesterday’s buyers of Yong’an were Yong’an’s own broker. Definitely Guo Linshuang holding back some positive news. Totally safe to follow.
Guo Linshuang reversed to sell. Yesterday was just a hard pull. Needed to recoup the rally funds.
Market maker unloading, stock price shook violently. Major investors saw it wrong—the sellers were still Guo Linshuang’s own broker. Instinct said they’d been tricked, treated as retail by Guo Linshuang and sheared. They joined the selling camp.
“Falling, falling! Why falling!” Retail investors shouted.
“Just market maker wash trading. No rush.”
“Still falling, still falling. Is the market maker wash trading?”
“Definitely wash trading!”
“Really? Still falling, still falling. Is this wash trading? Feels like the main force is raiding my home? Washing till skinned.”
“Stay calm. Hasn’t it not reached yesterday’s pre-rally price yet? I bet the bottom is yesterday’s pre-rally price! For sure!”
“Really? It’s there, it’s there. Rally, rally, damn it, broke below!”
Even the confident ones earlier were doubting now. Breaking such a key price—shouldn’t happen.
“Yong’an won’t have problems, right?”
“Rally yesterday to let news ferment, unload today. Is Yong’an going bankrupt?”
“This main force is too unethical.”
“Sell! Sell! Sell!”
Wu Sibao watched with glee. The feeling of acting as a market maker was worlds apart from retail.
In the past, he’d be one of the cursers, but now, face unchanged as Mount Tai collapsed—manipulating the whole market felt too good.
Wu Sibao came often and knew some old stockholders.
An old stockholder knew Wu Sibao’s stock market jinx attribute and asked him, “Brother, buy or sell now?”
Logically, Wu Sibao wanted the price to fall, so more sellers the better, more smashers meant cheaper buys for them.
But happy today, time to give welfare, a chance to make money.
Wu Sibao smiled, leg shaking. “Take my advice. I have inside info. Bullish.”
“Sell!”
The old stockholder turned without hesitation and told his buddies, then rushed to the counter waving money to sell stock.
“You motherfucker!” Wu Sibao stood up, hands on hips, face black, glaring at these scoundrels. He wanted to go beat these scoundrels.
