"If we talk about cotton stocks, there may actually be a lot of them in Guangzhou." Wu Yijun thought for a moment and said, "It's just that with the current market situation, the other party will most likely be reluctant to sell. If you buy according to the market, you may not be willing to sell."
"As long as there is stock, it will always be sold, not to mention that in a few months, new local cotton will be on the market. If you don't sell it, you will lose money. Now is a good time to sell."
"That's true, but the market is hot right now, and it's going up every day..." Wu Yijun said with a smile, "I've never seen cotton become so popular! You probably don't know, but now there's a new trick..."
"There are several flower and cloth shops in the city, and they have privately set up a cotton market, selling 'paper cotton'."
"'Paper cotton'? How to make cotton from paper?" Chen Lin was confused.
"Haha, so this is a new thing!" Wu Yijun said, "But it's not too new. Your family has been making silk for generations. Do you know about 'pre-renting mulberry trees'?"
"Of course we know this." Chen Lin said, "Sericulture farmers find people who grow mulberry and make an agreement in advance to pay and rent a number of mulberry trees. When the time comes, they can go directly to the garden to pick regardless of the market conditions." After he finished speaking, he suddenly understood, "That's it, Are they selling new autumn cotton?”
"That's right. You go there to buy it and after you pay, he will give you a warehouse receipt stating how many loads of cotton you can pick up when due. It's not just a piece of paper!"
"It's indeed a new trick. But we need cotton now. What's the use of just a piece of paper?"
"Good nephew! You are an honest businessman and don't understand their tricks." Wu Yijun smiled and said, "This piece of paper is just a contract. A piece of paper can be exchanged for money. Isn't this a flat earth?" Is the cake cutting out? They can give out as much paper and cotton as they want. Is there such a profitable business in the world?"
"But, they still have to be delivered at maturity! What if too much is sold and there is not so much spot stock that cannot be delivered... Could it be that they are planning to leave at the end. People who buy paper and cotton have not thought about it. Have you passed?"
"Of course I have thought about it, but they think differently from what you think." Wu Yijun said, "After the paper cotton is sold, it can be traded. A buys it and sells it to B, and B buys it and sells it to C... Just like It's normal to pass flowers by drumming. Nowadays, the price of cotton is soaring. If you buy it in the morning and sell it in the afternoon, you can make money... You can't underestimate this passing of flowers by drumming. Every time it is passed, the price will rise a lot. The price per load this morning has been It’s more expensive than spot goods…”
"This..." Chen Lin felt incredible. In fact, the concept of "futures" already existed at that time. In theory, there is no strict high-low rule between futures prices and spot prices. Futures prices mainly estimate future market supply and demand. If there is a major disaster this summer and cotton production suddenly decreases or the Senate opens ten more cotton textile mills, it is not impossible that the market price in three months will be higher than now, but the risks involved are astonishingly high. It's completely a gamble.
"This... I'm afraid something is going to happen." Chen Lin said.
"That's what I think." Wu Yijun sighed, "But those fabric shops and speculators must have made enough money, and the unlucky ones are probably the last ones who took over. I heard that there are many small households in the city, traffickers and lackeys. People like me have also pooled their money together, and when they get up, they will buy this paper and cotton to buy and sell."
"I'm afraid that in the end we will lose everything and cause something unbearable!" Chen Lin sighed.
After the uncle and nephew expressed their feelings, Wu Yijun said: "You don't have to worry about buying cotton. There is a family that has ready-made cotton."
"I don't know which one it is? My nephew, go give it a try. If you can persuade them, that would be great."
"His family must be willing. Speaking of which, they are your old acquaintances, Dong Jizhong's family."
"Is it him?" Chen Lin was startled, "His family was originally a hereditary military general, not a merchant. Although there is some land locally, most of it is occupied Wei Tian, and now it has been handed over to the Australians. Where can we get cotton?"
Chen Lin had always known that the Dong family and his cousin had a long history of contact, and he knew that the Dong family was actually one of the shareholders of the Nansha Textile Factory this time, but the specific amount of capital contribution was unknown. Chen Lin naturally didn't ask.
"Haha, you only know one, but not the other." Wu Yijun said with a smile, "Dong Jizhong's father and elder brother were both officials in the Ming Dynasty - they were quite young. When we set up a factory a few days ago, I and I Xiao Dong said that after the factory was set up, the demand for cotton would definitely be huge, and everyone had to think of a way. Xiao Dong wrote a letter to his father and brother and asked them to try to purchase cotton and transport it to the south. They also bought several hundred tons. "
"Since there is cotton, my nephew will go and ask for it now!"
"Don't worry, I have made an appointment with him to go to the textile market tomorrow. We will talk about it when we get there."
Early the next morning, the uncle and nephew had breakfast and took two rickshaws. The four servants took two cars and headed towards Qingchang.
Wu Yijun's family lived in the north of the city. After leaving the house, the rickshaw headed south and then turned west. The coachmen were all strong young men, quick on their feet and familiar with the roads, and they were out of Xiguan in a blink of an eye.
Although there were a lot of neighborhoods outside Xiguan, it was still a relatively neglected place in the 17th century. The rickshaw ran out for a while before stopping at the roadside.
"Here we are, over there is the Wanguo Textile Market." Wu Yijun said.
Chen Lin got out of the car and looked around, and was stunned. The place was surrounded by paddy fields and wasteland, and the only building that could be called a building was a newly built pier on the roadside. There were quite a few people on the pier, and it was very lively with people coming and going.
"This is...a market?!"
"Haha, this is the ferry. The market is across the river - Henan. We need to ferry across from Xiguan Wharf." Wu Yijun pointed to the opposite side of the river. There is also a wharf on the opposite side, and you can vaguely see the streets and houses built along the river. , it seems that the scale is really quite big.
How did the Australians think of setting up a market in Henan? Wouldn't it be inconvenient to come and go like this? Chen Lin was secretly puzzled. Although Henan is just south of Guangzhou, before there was a bridge on the Pearl River, transportation could only be carried by boat. The transportation was very inconvenient, and there were not many residents, who were mainly engaged in agriculture.
He told his question to his cousin, and Wu Yijun nodded and said, "I'm curious about this too. Generally speaking, just go over and have a look."
There is a ticket office for the ferry at the pier, and the ferry here sails every half hour. The ticket price for a single person is one point, and one point is added for those with luggage. There were already many people waiting under the thatched hut waiting for the ship.
Wu Yijun didn't want to wait any longer. Fortunately, there were many private ferry boats at the pier, all with operating licenses and boat license numbers issued by the Guangzhou Police Department. They lined up in order to wait for passengers. The price was five cents a time, but just hop on. Take it with you, very convenient. These were the livelihoods of Zhujiang Danhus in the past, and they are still engaged in this business now, but the Guangzhou Police Department has included them within the scope of management, and all ferries must obtain licenses and operating certificates for management.
Wu Yijun found a small boat and immediately ferried to Henan.
When the two people boarded the pier, they could see many laborers cleaning up construction waste on the construction site, and some people were laying paving surfaces and planting trees. It is obvious that the construction of the market has generally come to an end. In addition to the ten metal characters "Guangzhou Wanguo Textile Market" hanging high at the entrance of the market, there is also a very conspicuous street sign: "No. 144, Xingang West Road".
Chen Lin looked around. The market was surrounded by fields. Where was the house No. 143 in front of it? Although a new town has been built here and the streets and houses are neat and beautiful, it is obviously not as prosperous as Guangzhou on the other side. There are only a few pedestrians and it seems a bit deserted.
Since ancient times, opening a store has been about a good location, but Australians have gone the opposite way, finding a place that is quiet and inconvenient to open a market... What kind of business is this?
While I was wondering, I suddenly heard someone calling:
"A Lin? Are you here so soon?" The voice was very familiar. Chen Lin turned around and found that it was An Jiu.
The internship team arrived in Guangzhou with him on the same boat two days ago. But they broke up after arriving in Guangzhou. The internship group went to the Big World, and Chen Lin went directly to Wu Yijun's house.
"It turns out to be Miss An!" Wu Yijun said with a smile, "What? You are also here to visit the market?"
"We're not here for shopping," An Jiu said with a smile, "We're here to help. There will be a rental and sales meeting here in a few days. I'm here to make some preparations. You are here to see the shops in the market, right? .”
"Exactly." Wu Yijun nodded, ""
"Then let me take you to visit in advance." An Jiu poked her chin with a pen. As soon as the pier was opened in the past few days, many curious Guangzhou businessmen came to visit, wanting to see this "All Nations" diorama.
"Well, Miss An has official business, right?" Chen Lin said, "Will it delay the official business..."
"It doesn't matter, showing customers around is also part of my job." An Jiu smiled.
"Speaking of which, Miss Anjiu, since you are doing business, why do you want to set up the market in Henan? Wouldn't it be inconvenient? Besides, the popularity here is too thin." Chen Lin asked one question when he entered the textile market. A question that both my cousin and he wanted to know.
"This! Because this market mainly deals with bulk trade, and most of the goods in and out are transported by ships, so market access and popularity are not key issues. The place needs to be large enough and close to the river to be able to berth ships," An Jiu said.
In fact, Lishan chose land in Henan mainly because land prices here are cheap and he can purchase a large amount of land at one time. If there is a need for expansion in the future, there is a lot of room for expansion. It is more convenient than Guangzhou city or other suburbs. At the same time, he can also promote the development of Henan.
Although the market positioning customers are all-encompassing, the main customers are wholesalers. The quantity of goods coming in and out at one time is very large, which requires a large area of warehouse for turnover. If it is a foreign businessman, it also involves the long-term and short-term residence of the crew and merchants. To meet these needs, a large amount of land is required.
(End of chapter)
