Chapter 79: Deal Struck
At the banquet table.
Gu Yansheng continued to explain to them the next method of making money.
“Didn’t I drive down the futures price?
But this forced requisition news is fake after all. In a few days, once the businessmen are dealt with and behave themselves, the clarification still needs to be made. Won’t the price rise back up then?
In winter, what thing’s price is the most stable? Cotton yarn!
These few days, we’ll acquire cotton yarn at low prices, as much as we can get. Buy at 30 silver dollars, buy at 40 silver dollars, then sell when it reaches over 100.
Three hundred percent profit.”
“Oh man.” Wu Sibao slapped his palm, feeling like he’d met a kindred spirit late in life: “I always say people’s brains are different. Some people are born to make money. You know, such a simple reason, how come we never thought of it?
Suppress to make a profit, then sell off to make another profit. Making money is that easy. You say, all the effort we put in before to make that little money, what a waste of time?
I never even thought to pay attention to the stock market before?”
Ye Jiqing deeply agreed.
“Some things, if not pointed out, outsiders really wouldn’t know.”
Once Gu Yansheng explained it clearly, they felt this was indeed how to make money on this matter.
“Then we need to quickly get that money to you. This money needs to continue to be invested.”
Ye Jiqing immediately thought of the suitcase of money still at Agent Headquarters. No wonder it was called an appetizer. That portion had only doubled, but investing it again could triple it. Indeed very appetizing.
Gu Yansheng smiled while eating, “No rush. For now, we have enough cash. Several US dollars worth of cotton yarn, acquiring it also takes time.”
“Keeping it here with me is useless anyway. Tomorrow morning, I’ll send someone to deliver it to you.” Since making money was assured with no risk of loss, Ye Jiqing’s regard for Gu Yansheng rose a level. This was a wealth-gathering boy; whatever he said was right. Making money was the priority.
Wu Sibao was still pondering, puzzled, and asked: “There’s one thing I don’t understand. You said you sold the cotton yarn futures at 35, but our operation isn’t over yet. Couldn’t it drop more? Why sell so early? Doesn’t that mean less profit?”
“If not sold, where’s the principal to acquire cotton yarn?”
“That’s true.”
“Come on, drink and eat.” Li Shiqun called out: “Don’t just keep asking. Let Yansheng eat a bit too. It’s like he’s here specifically to give you all a lesson. He’s still hungry.”
“Hahaha, yes yes yes, Director Gu, please.”
One drink led to more. With such a joyful money-making matter, Wu Sibao drank two extra bottles. When the banquet ended, he was thoroughly drunk and insisted on sending Gu Yansheng home.
He said he wanted to chat more about stock matters.
In this drunken state, letting him drive would make Gu Yansheng fear a car accident, losing his life to him.
Even walking wasn’t okay. Walking with Wu Sibao together would raise the chance of Military Statistics Bureau revenge by twenty percent. Standing next to him, he’d be specially taken care of by bullets.
He refused firmly. With Li Shiqun and Ye Jiqing holding him back, the drunk Wu Sibao couldn’t make a fuss.
Tonight’s banquet went peacefully. Nothing happened here. Gu Yansheng knew Lu Bowen was probably receiving goods smoothly.
The next day.
The sky cleared, the hangover wore off, and Wu Sibao felt capable again.
Stocks only had this much trickery. This money was easy to make.
Arriving at Agent Headquarters for work, instead of rushing out to seal warehouses, he pondered the stock trading wisdom Gu Yansheng had shared yesterday.
As long as there was negative news, the stock price would definitely fall. Like cotton yarn today, the price definitely wouldn’t rise, because he would continue to confiscate warehouses. The market would definitely panic.
So if he bought some options to short cotton yarn now, this money would be practically free!
Bold hypothesis, careful verification. He carefully mulled it over in his mind. No problem. He could create negative news himself, guaranteed to scare people, guaranteed to make money.
“Liu San.” Wu Sibao called his underling, “Later when going out to seal warehouses, you lead the team. Once at the destination, first find a telephone booth to contact me. Seal only under my command. Got it?”
“Got it.”
“Remember it well! Don’t mess up my business. Go.”
Wu Sibao arranged for a subordinate to answer the phone, while he went to the bank to withdraw money. It was his turn to get rich this time.
One hour later, Zhongye Public Office. The stock market had opened.
Wu Sibao looked around east and west, not understanding much, but he definitely understood what was said about cotton yarn yesterday.
Looking at the price, from the 35 silver dollars Gu Yansheng sold at yesterday, it had now reached 19 silver dollars. No, 18.
Eighteen silver dollars!
So if he hadn’t sold yesterday and sold now, one contract would earn 18 more silver dollars? 200 contracts would lose 3600 silver dollars.
In just this short time, 200 silver dollars gone.
“Quick, go buy cotton yarn, look bearish, buy it all, open leverage, open two times leverage.”
Wu Sibao urged his underling to rush to the counter. Once the underling bought and returned to report.
“Captain, all twenty thousand silver dollars bought.”
One phone call back to 76, confirming Liu San was in position. What was there to wait for?
“Tell Liu San to seal hard for me! Make as much noise as possible!”
Fu Xiao’an’s office.
Wu Maiding reported: “76 has started again. According to the stockbroker’s news, 76 people bought a bunch more cotton yarn short positions.”
“Impressive.” Fu Xiao’an sneered, “I racked my brains and never thought Li Shiqun was a market operator expert. Earning our money in the stock market on one side, acquiring cotton yarn at low prices on the other to earn another sum. Being Deputy Director at Agent Headquarters is too underutilized. He should go to Chongqing Government’s Economic Department as Director. Just his stock trading skill alone is enough for Old Jiang’s heavy reuse!”
“A bit greedy, but the timing is grasped perfectly.” Wu Maiding had to admire the vision. “I estimate Gu Yansheng asked him for help. He timed the short selling on us perfectly.”
“How much loss on the books now?”
“Nearly 22 million silver dollars.”
Although they used certain strategies to reduce losses, even profiting during the process, the fact was the futures book price kept falling.
It was just that their family fortune was strong. Anyone else would have had a margin call long ago.
Fu Xiao’an thought and said: “Timing is about right. Pressing further down risks others grabbing chips. Have our people go out to receive goods. Acquire as much cheap stuff as there is. Prepare another ten US dollars. I’m going to celebrate Director Gu’s flag victory.”
“Yes.”
While they talked, Gu Yansheng was meeting Lu Bowen in the office.
Lu Bowen reported last night’s harvest: “Received very well. These businessmen feared forced requisition. Almost as soon as I started saying I wanted to acquire, they rushed to sell me the goods. Buy and take delivery immediately, money and goods cleared on the spot.
Four US dollars, I’ve already received nearly thirty thousand, over a dozen warehouses piled full.
Wore me out.”
Lu Bowen hadn’t slept all night, either receiving goods or negotiating.
Now full of excitement, no sleepiness: “With our inventory volume, not exaggerating, as long as the organization can transport it out, cotton yarn for a hundred thousand people, we alone can package it all!
Average price twenty silver dollars. Even if the organization racks its brains, it couldn’t imagine buying so much cotton yarn so cheaply!”
When Lu Bowen first took the mission, he estimated maybe providing just ten or so packs. After all, they just arrived in Shanghai without much financial strength.
Even counting Gu Yansheng’s financial strength and power, with cotton yarn prices rising daily, at average 100 per pack, getting enough for ten thousand people would be impressive, very exaggerated. That would need ten thousand silver dollars, and still avoid detection.
Now openly acquiring, and quantity directly ten times more.
Twenty silver dollars per pack, one pack for a hundred people, a hundred thousand people is a thousand packs, twenty thousand silver dollars. This money earned from the stock market, provided by the traitors themselves.
Thinking of this, not tired at all.
“Continue acquiring, speed it up, price about right is fine.” Gu Yansheng handed him the money sent back from 76: “Time window won’t be long. Acquiring such a large quantity of cotton yarn, last night’s surprise worked, but daytime news can’t be contained. Once those unscrupulous merchants come to their senses, acquiring again won’t be easy.”
“Okay, I’ll continue acquiring.” Lu Bowen said and stood up, not wasting a minute.
“Get a car, rest on the road, don’t wear yourself out.”
“Won’t. Spirits are high. Besides, we’re a boss now, how could we not have a car? I’m off.”
Ring ring, ring ring.
“Hello.”
Noon, Fragrant Full Garden.
Gu Yansheng hadn’t expected Fu Xiao’an to invite him to eat, and with such sincerity.
Straight to the point, two suitcases out, totaling ten US dollars.
“Brother Gu turns hands for clouds and rain. One Japanese Army forced requisition idea made the foreigners terrified. At the start of their hoarding and price gouging, they at most thought the city government might confiscate. Then they could use public opinion pressure to make a fuss.
But never expected it would be Japanese Army forced requisition, making them suffer in silence like eating bitter gourd, unable to speak out.
Key point is they still don’t know to the end it was fake news. The Japanese never admitted it. Even if they want to curse later, they can’t find who to curse.”
Gu Yansheng sipped tea smiling, “Mayor Fu’s words seem to think the Japanese Army forced requisition fake news was spread by me? I wouldn’t dare say that. I knew nothing about this matter.”
Fu Xiao’an didn’t mind Gu Yansheng not admitting, smiled and said: “Britain and America won’t give up Shanghai’s market, but Director Gu smashed the hoarding and price gouging situation. Once the Japanese Army forced requisition news is clarified, the Foreign Chamber of Commerce paying up is a done deal.
Since the outcome is set, Shanghai’s economy should recover. Otherwise, I’d be cursed by the businessman group as mayor.
Director Gu, about enough, right?”
Gu Yansheng calmly sipped tea. Ten US dollars to make him stop, without regard for prior conflicts. The mayor humbled himself to seek peace and gave money, completely unconcerned with face. No wonder Fu Xiao’an endured so many personnel changes yet stood firm in Shanghai.
Since his business was done, no reason to fight Fu Xiao’an hard.
Ten US dollars not appealing?
Gu Yansheng set down the tea cup and said: “Mayor Fu speaks reason. Shanghai’s economy definitely needs our care. I’m willing to make efforts, but this matter needs a final conclusion. The concession people need to pay up.”
For Gu Yansheng, the only standard to report to the Japanese was the concession merchant ships accepting the new regulations, that is, paying and admitting defeat.
Fu Xiao’an didn’t dare be vague: “This matter is on me. Give me one day. I’ll negotiate. Strive to complete before your Judicial Department gets off work today.”
Fu Xiao’an wasn’t afraid Sha Shun and them wouldn’t agree. This time Sha Shun and them lost badly in the stock market too, similarly needing to recoup. Compared, twenty percent cargo ship deposit was negligible.
And the reason to settle before closing was that from now to stock market close, enough time for him to scoop up a big bottom.
Tomorrow’s opening, the foreigners would carry him.
Gu Yansheng nodded, “Then trouble for the mayor.”
“Good.” Fu Xiao’an laughed big, “Then tomorrow, trouble you to hold a press conference with me, to give citizens confidence in Shanghai economy’s continued prosperity.”
“No problem. Judicial Department fully supports Shanghai economic stability and development.”
