Chapter 26: Republic of China: Starting from the First Class of Whampoa Chapter 26: Gunpowder Smoke in the Stock Sea

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Protagonist:

Lv Muzhi

While fighting raged at the Whampoa Military Academy in Guangzhou, rumors were already spreading throughout Shanghai City.

Beside the Shanghai Securities and Commodities Exchange, inside Jiangnanchun Teahouse, the fragrance of tea leaves mingled with the restless air of capital as stock investors hotly debated recent major domestic events, discussing whether they were bearish or bullish.

At an elegant table by the window, two guests were especially quiet.

A middle-aged elder nearing fifty wore a silk long gown, his face lean, eyes observing nose, nose observing heart, as if listening yet as if wandering outside the world.

Another young man sat below him, dressed in a Western suit and leather shoes, occasionally pouring tea for the elder.

"Heard about it? Something big happened in Guangzhou the day before yesterday!" At the central table in the teahouse hall, a middle-aged man wearing gold-rimmed glasses tried to lower his voice, but still caused several surrounding tables to prick up their ears alertly.

"Is it about the Merchant Corps rebelling? It was in the newspaper, wasn't it said the Merchant Corps was repelled?" another person interjected.

"Repelled? Hey, how could it be that simple!" The man with gold-rimmed glasses sneered, showing a hint of mystery: "I received the latest telegram from the Guangzhou branch; the situation is far worse than what the newspaper says! The defeated soldiers of the Merchant Corps have directly fled into the British Taikoo Dock!"

"Ah? A foreigner's dock? This... this foreigners are involved too?"

"Far more than involved!" A plump merchant from another table joined the discussion: "My news is even bigger! The Student Army of the Whampoa Military Academy has already surrounded the British Taikoo Dock! Watertight! Claiming to arrest rebel party members! You guess what the dock manager did? Hey! He just refuses to admit it, and both sides are stuck in a stalemate."

As the plump merchant spoke, he produced a photograph, which happened to show the Whampoa Student Army surrounding the Taikoo Dock with guns; on the photo, Lv Muzhi was negotiating with the dock manager, British merchant manager Tomson.

"See? Pictures prove the truth; this will be the front-page headline this afternoon!"

Once this news came out, everyone in the teahouse crowded over, only the elder and young man by the window remained motionless like a mountain.

"Surrounded the British merchant's dock? This... this wouldn't it anger the British? Their warships are right in Hong Kong!" The tea guests discussed heatedly.

"Who says it wouldn't! The relationship between both sides is already very tense; the Merchant Corps is now just a clown, guarding Guangzhou City waiting for Sun Yat-sen's Northern Expedition Army to return and beat them! His British father's fleet is blocked by the Grand Marshal's Office fleet at Humen and cannot enter, both sides are on the verge of conflict! If a gun goes off... tsk tsk!" The plump merchant drew out his tone, very effective.

The man with gold-rimmed glasses pushed his glasses: "In my opinion, Taikoo Steamship Company is in big trouble this time. Taikoo Steamship's stock price already shows signs of falling; the Guangzhou Taikoo Dock has ten large warehouses, piled full of goods, with 26 cargo ships, 20 of which were trapped in Guangzhou and unable to leave when the incident happened;

The Whampoa Student Army won't let goods leave the Taikoo Dock, and warships have also blocked the waterway in and out of Guangzhou; most fatally, goods worth one million yuan are piled up in the dock; if this is delayed, it's enough for Taikoo Steamship to compensate..."

Once the news came out, the investors in the teahouse whispered to each other, discussing countermeasures.

"Hmph! Don't spread alarmist talk here; Taikoo Steamship's stock price hasn't fallen much, just a technical adjustment; everyone don't panic." A merchant with a mustache analyzed, obviously an investor holding Taikoo Steamship stock.

"I know exactly how many pounds and ounces Sun Dapao's navy has! The Hong Kong Fleet of the British Empire will soon open the waterway; warships will sail to the Taikoo Dock; what use are those few broken guns of the Whampoa Military Academy? Who cares whether the British support the Merchant Corps or not; we shouldn't worry about this; Taikoo Steamship's stock price is very~safe~!" Another stockbroker in a Western suit also raised doubts.

"Tsk! Mr., you're an amateur by saying this; in my opinion, the Hong Kong Fleet cannot enter Guangzhou! Now is the period of cooperation between the Qingtian Party and the Workers and Peasants Party; behind them stands the old Russians; an old Russian communications command ship also participated in the standoff against the British Hong Kong Fleet; both sides have been standoff at the Humen Waterway for a day and a night; if they come hard, wouldn't it turn into a conflict between the old Russians and the British?"

"You think, Taikoo Steamship's dock shelters rebel commanders; can this business be done in peace? Once Guangzhou is in chaos, its shipping will definitely be greatly affected. Moreover, this Taikoo Dock is not in the Guangzhou Concession; think carefully again; if Sun Yat-sen gets angry, backed by the old Russians, and confiscates the assets of the Taikoo Dock, Taikoo Steamship will suffer huge losses!"

"Right right right," the plump merchant immediately echoed, "In this chaotic time, who would still entrust them to transport goods? Insurance costs will probably skyrocket too! This Taikoo Steamship stock... is risky!"

The mustache merchant was so angry his chest heaved continuously, pointing at the man with gold-rimmed glasses and the plump man cursing: "Damn it, I see you two bastards are deliberately spreading this bearish news... you want to short sell and buy the bottom, right..."

"You little red, you dare to curse people; let you taste the might of Shanghai Master!" The man with gold-rimmed glasses fought the mustache man, and Jiangnanchun Teahouse instantly fell into chaos.

At the elegant table by the window, the elder in the long gown finished half a cup of tea, stood up, put on his hat, and left Jiangnanchun Teahouse together with the young man.

Beside the teahouse, the Shanghai Securities and Commodities Exchange was already crowded with people, consulting about stock matters.

"Hey hey hey! Manager, how is Taikoo Steamship's stock price today?"

"The newspaper says the Guangzhou Merchant Corps Incident involved arms transported by Taikoo Steamship; what exactly is the impact on Taikoo Steamship's stock price?"

The young man helped the elder in the long gown into an old automobile; after the car started, the young man said: "Mr. Zhang Jingjiang, it seems the news we released has taken effect."

The elder called Mr. Zhang Jingjiang smiled: "Guofu, our news alone is far from enough; the Grand Marshal's side hasn't spoken yet."

The two sitting in the car, the elder Zhang Jingjiang, the younger Chen Guofu, were core members of the Qingtian Party and also an important link in this short selling of Taikoo Steamship stock.

Chen Guofu could no longer restrain himself: "Mr. Zhang Jingjiang, should we arrange to sell off some stock?"

"No rush; first go to your securities company; wait until the Grand Marshal issues a statement before taking action."

"To short sell Taikoo Steamship, how much preparation have we actually made? It shouldn't cause huge losses, right?" Chen Guofu was somewhat worried; this time, they had used Qingtian Party funds and part of the Northern Expedition funds.

Zhang Jingjiang sat in the back seat leaning on a cane, calm and composed: "First, naturally, the Whampoa Military Academy surrounded the Taikoo Dock, with warships of both sides standoff at the Humen Waterway, first igniting this smokeless stock price war;

When Jiang Kaisheng telegraphed to propose this suggestion, I specially contacted business spies in Guangzhou and found that a large batch of undelivered goods were piled up in the Taikoo Dock; a large number of Taikoo ships sailed to Guangzhou to load goods; with the Whampoa Student Army and warships surrounding them, goods couldn't get out, and the breach of contract penalties would be enormous;

Also, two days before the Merchant Corps Incident occurred, I, in the name of a friend's company, placed over ten ships of urgent express parcels to the Taikoo Steamship branch in Shanghai, destined for Guangzhou, agreed to arrive in five days; today is already the fourth day; if they don't arrive tomorrow, Taikoo Steamship will have to pay me breach of contract penalties;

Finally, the Grand Marshal will issue a nationwide telegram; once it is found that the Taikoo Dock has colluded with rebel parties, a statement will be issued to confiscate Taikoo Dock assets according to local law; anyway, this dock was not built in the Concession and is not protected by British law."