Chinese ancestral Futures: China’s “Rockefeller” Rong family

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For centuries, “flour king” “king cotton”
“red capitalists”, “Chinese Rockefeller”, the title of this trump card has been around the Jung family, they dash in the market, dominate.
In the 1950s, Mao Zedong, commented: “Veterans Home is China’s first national capitalists households, China is the world truly be called in the consortium, only the family.” In a hundred years, under certain historical circumstances, Wing
family has gone through many changes unimaginable drama, repeated unrest, endless ups and downs, but in the end can save the day.

impoverished teens began as an apprentice

Rong brothers impoverished, during the Taiping Rebellion, Wuxi the civil war, his father Rong
Hee Thailand’s three brothers, two cousins ​​uncle of four are unfortunate enough to be caught or killed.
Wing’s an almost extinct, Rong Xitai as an apprentice blacksmith shop in Shanghai was spared, he has settled down after giving birth Zongjing, Rong Desheng and other four siblings.
But suffer from a poor family, the brothers teens, his father let them go to Guangzhou, Shanghai and other places to make a living as an apprentice.

founder Guangsheng banks

Later, Rong Xitai invested in Guangdong likin Bureau of the General Office of Zhu Zhongfu men to help manage accounts.
1895 Rong Xitai sick leave to return home, there are thousands of pieces of silver dollar savings, in 1896, he set up a joint venture with people in Shanghai Guangsheng banks, Zong King, Troy brothers divided as manager and accountant.
Rong Xitai life hard pragmatic, asked his two sons when he died, speculation should not do business, to stick to solid, steady acting style.
Two brothers has complied with the teachings of his father, and secure operating banks, speculation never, ever had dug a few years after the pot of gold, which became the basis for the two brothers entrepreneurship.

to enter the flour industry

When Desheng south of Guangzhou, to see the opportunities flour industry, he put this idea to tell Zongjing brothers
hit it off.
The first year of the 20th century, Rong family business has taken a decisive step forward, CPIC pier in Wuxi outside the West founded the Baoxing flour mill, guaranteed prosperity mean, this is the second home of modern business history in Wuxi
17 acres of land, stone four French, three wheat screen, two flour sieve, it is already all of his possessions mills.

Feng Shui lawsuit caught the storm

Factory founded Rong Brothers did not go well, then squire Wuxi joint report Baoxing flour mill “will be good at public land to the people
Wai into the world “, and the erection of chimneys, in the ancient city side will” destroy feng shui, injury style “, the magistrate ordered to instruct mills ordered migration.
The news came out, one after another rumor Rong brothers built a flour mill angered squire do not go on; shareholders have to ask, and some even thoughts of retreat was intended.
The final storm of a feng shui lawsuit directly hit two rivers Governor’s Mansion, fortunately Governor Liu Kun-yi is Westernization, the Court of First Instance to refute the book back, so a 10-month feng shui lawsuit storm considered closed.

flour unmarketable almost shut down

After the flour produced, poor sales, the local rumor “mechanism looked white flour, but no nutrition, eat it,
indigestion “; plus the southern people staple food is rice, flour market mainly in the north, while the Rong brothers never cross the river, the northern market is not fully open.
Baoxing struggling a year after major shareholder Zhu Zhongfu Industrial see no profit, decided to pull up stakes, but the people have decided to increase the brothers, and raise money around, and changed its name to Mao new flour mill.

management talent burst on the scene

after renaming, Rong brothers first enlisted the hotshots on marketing, specifically to open markets of the North.
They also move in the sales lot of brains, such as random bag of flour into a copper, as “luck”, giving consumers a surprise, this promotional pattern is still valid in many years.
In 1904, the Russo-Japanese War broke out northeast, a sharp increase in demand for flour, all of a sudden like a business together.
The two brothers also attaches great importance to investment in new technology.
In 1905, they learned that the English noodle equipment is better than the French, immediately decided to purchase six British Steel mill machinery, production capacity suddenly doubled.
Soon after, they learned that the United States developed a new flour machine, more excellent performance, so he determined to purchase debt.

flour become king

From 1912 to 1917, Wuxi Rong brothers breath out of nine plants.
After Mao new flour mill run for eight years, and finally a firm foothold, 1910, factory output ten times larger than when first built, is already one of the best domestic manufacturers.
At this time, the two brothers divided the second child left behind Wuxi Desheng, Rong Zongjing boss went to Shanghai.
In 1912, Rong Zongjing New Gate Bridge in Shanghai opened its second flour mill, named Fuxin.
He proposed at the shareholders meeting, in order to expand production, not to mention the bonus within three years, all the money all out “snowball.”
In order to speed up the “snowball” rolling speed to take risks for the pleasure of taking a new Zongjing, office rent and acquisitions and other means.
In Shanghai beach, he sent out the signal: “As long as someone is willing to sell out to the yard, I would dare to buy.” The summer of 1913, he rented troubled ZTE flour mill (a wholly-owned, two years after the acquisition, changed its name to the new four-fu
plant), in the winter, ZTE factory in the east, the new Fuxin plant.
June 1914, he was in a new plant next to Fu eat into the land, built a new Fu Factory.
In 1916, Rong Zongjing and went to Hankou, Wuchang new Jianfu, the second year, a veteran of the rent Office Shanghai Huaxing Chinese-owned flour mill, renamed Fuxin Liu Chang.
Since then, the Wuxi Rong Brothers fame roaring business in China.

to establish cotton empire

Established in 1905-new mill to 1912, when already a lot of money, and available annual profit of more than 20 million.
In 1915, Rong Zongjing in Shen Zhou Bridge to start building a new mill on the outskirts of Shanghai, the purchase of 36 British textile machinery, production started in the second year, are catching up with demand during the war in Europe hunger.
Shanghai cotton prices rose, shot up from more than 90 to 200 per piece two two, there has been “an ingot cotton yarn to make a” windfall scene.
Shen new three years after the start, the production of cotton yarn from 3584 to 9 811, cotton production increased to 128,000 from 29,000, the profit is even more alarming, from the start of the year increased to 222,000 yuan 20,600 yuan
3-year growth of more than 10 times.

China Futures” ancestral “

1919 years the Japanese have opened a lead by taking (ie futures) in Shanghai,
operating flour, wheat bran futures.
Take the lead is mainly used for the Japanese price of raw materials and finished products of tool control, and they can cater to the cotton trade.
Japanese business by flour, wheat bran, cotton futures, and control of raw materials and finished goods prices, the final rule over Chinese businessmen.

And China has been the spot trading, he has been behind a big step.
In this regard, Rong Zongjing germination of the idea of ​​the establishment of their own futures.
After the outbreak of the May Fourth Movement, the country set off a wave of boycott, Rong Zongjing opportunity combined with other industrialists and businessmen, on March 1, 1920, with Fufeng plant Ning Yu Ting, Gu Shen maker exhausted first class of 18 people
the Shanghai Association of flour trade mechanism for the reorganization of Chinese flour mechanism of the Shanghai Stock Exchange, and on August 14 officially opened.

This is the Chinese people in Shanghai, the establishment of the first futures exchange, handling flour, bran futures.
Soon, Rong Zongjing and build on the progress, proposed the idea to build gauze Exchange in the Federation of Chinese Cotton Mill.
In 1921, officially listed in Shanghai Stock Exchange gauze, cotton futures managers.
Since then, he regained the initiative in futures prices of flour and gauze.

acquisition of the Japanese mills

Zongjing also did something to make Chinese business very long face thing.
In 1917, he bought a 400,000 yuan Shanghai, a businessman originally run by Japan Spinners, renamed the Shanghai New Plant.
Since the 1884 “red top” Hu bucket fiasco silk, cotton yarn industry in Shanghai for the first Anglo-American businessmen control, after the Japanese company into the world.
Today, Chinese companies as much courage and ability to acquire Japanese companies, people talked about a moment became news on the port.

finance” anti-Japanese “

1925 Nian 5 30,” Divergence “movement broke out, another round of unrest broke out boycott
, Rong Zongjing spotted the opportunity to short the yen staged a good show.
Zongjing first several days sold a lot of yen, the yen plunged more than forced.
Upon receipt of several large Japanese banks to come forward to maintain the composition of the consortium yen, indicating an immediate subordinates “flip over” without a trace to eat 2 million yen.

When the Bank of Japan to maintain the group to come forward under the yen rebounded, Rong Zongjing letting subordinates continue to publicly sell a lot of yen, and sent the yen will fall manufacture all kinds of public opinion.
For a time even the Shanghai banks, banks, European and American businessmen and banks have begun to throw a lot of yen, yen on the foreign exchange market to worse, the dollar fell sharply again.
At this point Zongjing kill a Parthian shot, the purchase of long-term daily use all capital sinks (for a period of six months), in order to raise funds for this unprecedented scale exchange speculation day, a large backlog of flour sold, yarn inventory,
and do not hesitate to throw long-term low-cost single stack.
Six months later, the yen rose gradually, Rong Zongjing according to the new parity against the back of the exchange day, almost a net profit of 4 million yen, major Japanese syndicate has suffered heavy losses.

management “carrot and stick judiciously”

Desheng think, well-run factory mainly by poor workers, the workers live in peace or not, culture
the level of direct impact on production.
He vows “carrot and stick judiciously,” the implementation of strict “rules of Public Works” is the “Viagra”, Shi Xinghui labor policy, labor is no doubt that the autonomous region “Well.”
Strict side, such rules and regulations opium staff to quit, quit gambling, quit drinking, quit fighting, quit molesting women, once the violation immediately dismissed.

On the other hand, in 1923, he launched three new factory in Shen welfare measures to workers, initiatives undertaken in 1926, “Labor autonomous region”, 1933 formally launched.
Education, have launched the children of workers and workers’ primary school free of charge morning, the evening, six or seven hundred thousand people participated in literacy classes.
In addition, office workers, etc. to develop as much of.
Huigong policies include hair living allowance, workers at the plant during working hours free meals; advances the cost of clothing, uniform for workers making clothing, bedding, staging charge; all free except for venereal health; increased vacation, three days vacation leave per month,
false putting movies, acting and so on; as well as paid annual leave system, as long as workers completed year of service, the competent consent can rest two weeks.
10 years’ service, you can rest three weeks, the wages paid as usual during the break.
Because of the public pension costs issued death, funeral expenses $ 50, generally made death funeral expenses 6 yuan.

sitting on half of China

on food and clothing

twentieth century, the early 1930s, the career Rong’s family reached its peak.
Shen new mill was about 20% of the country’s national capital spindles of cotton yarn factory, cloth several machines accounted for 28% of new and Mao Fu new flour mill scale accounting for about one third of the industry, accounting for Shanghai’s 1 /
2, the total number of its subsidiary companies amounted to 21, was a shocking first-scale private industrial group.
Zongjing had proudly told his friends: “Today the Chinese people, half are wearing me, eat me.” In 1933 his 60-year-old birthday, in He Shoutang the meeting, he told the gathering of guests very excited
: “martyrs old age, mistakes, and apologized, Wujin have reached sixty the number of spindles to reach six hundred thousand I would like to live to the age of seventy, eighty years old, seven hundred thousand spindles to reach 800,000 ……”

a crisis

1934 years, the Jung family ushered in the darkest period: family first card companies apply new textile ran aground.
At that time, the shadow of the world economic crisis increasingly enveloped the Chinese domestic deflation, feeling of insecurity, and the growing number of Republican government taxes also greatly increased the burden on private enterprises.
Shen Textile only one, take away the special tax was 1,500 million.
Then, tidal waves struck the international dumping, dumping of cotton yarn spinners in China, Japan produced, resulting in national textile industry has been struggling in a recession environment.
In 1934, textile, flour and while affected by global dumping, apply several new mill inventories are piling up, each flour mill Rong’s family are all shut down.

crazy debt expansion and huge speculative

Jung crisis, in addition to objective reasons, its long-term business strategy and execution have a great relationship.
Zongjing bold expansion, the opportunity to see it on the bite, his philosophy is “as long as someone is willing to lend money, I would dare to, as long as someone is willing to sell the plant, I would dare to buy,” it is a typical strategy of radical fanatics
“Buy a spindle, a little more like a gun.” Zongjing long ago became famous phrase.
In addition, from the beginning of 1926, Rong Zongjing and his two sons Rong Rong Po Yan Fu Jen Catholic and start speculative “foreign wheat” and “foreign cotton.”
Due to the frequent fictitious exchange, in the event of a worldwide wave of dumping, Jung huge loss of more than 10 million companies.
When the 1934 crisis, the application of new assets valued at 68.98 million silver dollars, silver dollars and liabilities of $ 63.75 million, is in a very tight state.
To March 1934, Shanghai is no longer an all banks are willing to Veterans Home loan, even Jung shares of 16 banks have closed the door, Rong Zongjing was anxious to commit suicide.

Brothers differences

Desheng Zifeng frugal, simple life, normally dressed in a gown, clothes and shoes, a plain skullcap, simple meals, not
smoking, no drinking, do not like the banquet, old age entirely vegetarian, to write notes with a cigarette case.
Zongjing believes that “show and field performance is the economic strength of the company”, seat of his car in 1918 style brand black Lincoln sedan, in 1921 he built the office building style in Jiangxi Road, there is dissatisfaction with his brother heart, I feel both multi-employer
, increasing consumption, but also from many things.

British Zongjing bought a three-storey garden room ocean, lintel, sill has a magnificent carved windows all year imported colored mosaic glass, decorative extremely luxurious.
Brothers different personalities, there are many differences in management style.
Zongjing heavy traffic, advocated doing the Exchange; Desheng against the exchange, pay attention to the cost of production.
Zongjing oceans, like to please foreigners, pay attention to scientific knowledge; Desheng heavy soil, relatively conservative.
Zongjing focus on Shanghai, a factory concentrated in Shanghai that Shanghai is a transportation and financial center, economic dispatch convenience, power is not the problem; Desheng focus on the mainland, he plans to Nanjing, Xuzhou, Lianyungang, Zhengzhou, development, bought a number of land
that the mainland with the production of raw materials, workers wages cheaper.

Life stain

1937 in early December, the Japanese set up a “people of Shanghai Association,” there is a list of members in the residence at the time of the 21 well-known enterprises in Shanghai
family, including textile magnate Zongjing, general manager and studied hydro Lu Bohong, grains industry Association Chairman Gu Xin first-class.
According to the “Evening News US Morning Journal” reported on December 24, “the people of Shanghai Association,” the first preparatory meeting held after the members’ Declaration and its Articles of Association, served on the Japanese military and naval authorities in Shanghai, request understanding
. ”
Although Zongjing said, “I have to go forward and do move to reduce the suffering of the people, without fear, just pure purpose, do not ask how their results.” But the move is still regarded as a traitor behavior, over 20 Shanghai Chamber of Commerce, Federation of Trade Unions
a coalition of groups rally and issued a statement, announced that the association is “illegal organization.”
A few days later Lu Bohong KMT agents were assassinated, Gu Xin is a Chinese grenade, Rong Zongjing after death threats were also forced to publicly denounce the “civic associations” in the newspaper, then go to avoid Hong Kong, and died in 1938
Hong Kong.

to make a significant contribution to the anti-Japanese

1937 year “Marco Polo Bridge Incident”, the brothers Rong Mao-new four plants inventory of tens of thousands of packages of flour
wheat and thousands of Tam, charge account to make the third Army rations.
After the “Eight?” Incident, they are the first batch of donated 50,000 bags of flour and a lot of reward items.
Wuxi all walks of life organized fight club, Rong Desheng to “Le agriculture’s” first donation in the name of ten thousand packages of flour, and later donated twenty thousand packages, including one million package to give relief to refugees.

“island” brilliant reproduction

in 1939 to 1941 this time, Shanghai concession to become “islands” special wartime environment
rapid population growth, foreign crowds to bring a lot of money, so that within the concession prices rose sharply.
During that period, the mill outside Shanghai Concession occupied areas are not being destroyed by enemy fire, it is to be usurped Japanese; Mainland great demand for gauze, in a concession to continue operating the mill, “City Lee all times.”
During this time, the Veterans Home not only pay off the equivalent of the entire pre-war bank loans 170 000 taels of gold, but also opened a number of banks and trading companies.
During the war, only a shrewd businessman is clearly not enough.
In the concession, Jung corporate borrowing is the name of the American and British companies.
July 1941, the Japanese government has ordered the puppet Shen receives two new factory “classified as state-owned,” but because the two plants rely on protests and representations of American and British companies, the Veterans Home was able to continue to have two plants

“Tianyuan Plan” and the “big agriculture program”

Although Jung industry suffered heavy losses during the Sino-Japanese War, but Rong Desheng in seventy years of age
as well as the ambitious “Tianyuan plan”, including the five Elements five major areas, from flour and want to expand to major food, expanded from gauze to printing and dyeing, silk, linen Ge, etc., from machinery to expand foundry, blacksmith to heavy industry,
can be made from a variety of machine tools, education from primary to university, the road turned Taihu Lake, to re-create a new “Tianyuan Industrial company” systems.
He said he was not a capitalist, but the cause of home.
1942 He also for the countries to develop the “big farmers plan” and advocated the promotion of first place in the western Gansu, Qinghai, engineering, agriculture, animal husbandry, science simultaneously.
However, due to the outbreak of civil war, which plans to eventually have a miscarriage.

Desheng abducted

1946 Nian 4 25, “flour king”, “Cotton King” is a group of unidentified Desheng
the kidnapping, creating a sensation.
Xiangrong kidnappers demanded a $ 500,000 home.
Veterans Home was funding mostly used in the restoration business and expansion of new plants, to come up with $ 500,000 is not easy, but we fear will delay the kidnappers threatened to kill, so the police did not dare to report everything in secret.
After 33 days, finally Chouqi $ 500,000, Rong Desheng was only released to return home.
But the case reached the ears of Chiang Kai-shek ordered the investigation and handling.
Finally cracked the case, recover the ransom, but the person in charge of the investigation of crimes but Xiangrong home to ask for detection fee, Rong Desheng in order to reward the military and police authorities and the authorities concerned, it has to pay $ 600,000, only the KMT take the second boss Wangxin Heng
, there are 15 million dollars, plus a small building.

Desheng chose to stay in the mainland

Before the founding of New China, located in Shanghai and Jiangsu and Zhejiang Provinces of national industry and commerce merchants, began a large-scale
the choice for a way out.
At that time the “Top Ten capitalists”, there are nine family migration, and some go abroad to Europe or the United States, while others followed Chiang Kai-shek to Taiwan.
Most of the Jung family, who also chose to leave, with the exception Desheng insisted to stay.
He is this consideration, the year he founded a public elementary school in Wuxi, Wuxi liberation in two years, has been the work of the CPC Wuxi Committee agencies are located.
Rong’s family at this time has been early to go to Hong Kong.
For the left Rong, now there are two versions, one was his decision to voluntarily leave his father and closely aligned; one is he was still required to appear in court with a lawsuit in Shanghai, just in time for the day of the liberation of Shanghai, Yin poor
Yang was wrong to left.

Rong first to support public-private partnerships

1954 years to take the lead Rong Shen opened a new textile and curtain government public-private partnership.
Many shareholders can not understand, fear of all property confiscated.
Rong said, “Socialism is the trend, do not go have to go. Just accept reform, we will have food to eat to work, and can keep consumption property.” Thus, the Veterans Home of industrial development for half a century, into state
That year, Shanghai set up a new group, Rong Yiren became general manager.
Then Vice-Premier Chen Yi Rong said the “red capitalists”, and to the identity of the former mayor of Shanghai, deputy mayor for his electioneering Shanghai.
Rong in the most glorious, he became vice chairman of China National.

Larry Yung, CITIC and Empire

1978 years Rong was ordered by the State, set up CITIC, is intended to international financing.
Almost at the same period, Mr Yung gave up the Tsinghua research positions and his family alone to Hong Kong battles.
In 1986, Larry Yung, CITIC Hong Kong officially joined as general manager.
At this point, Mr Yung had come to Hong Kong for many years, had not the door after entering the name of the business community, some of his capital achievement, as if to prove to the outside world, not just their own Rong’s son.
In 2002, Larry Yung boarded the position of China’s richest man.
This relationship has tied up with his sub-unit event six years ago.

As a large state-owned central figure in the group, can dare to head out to do richest man, Mr Yung should be the first person, he thus frequently into public view, its assertive personality.
As a third-generation descendant of the family of Larry Yung Chi Kin, Li Ka-shing and thrifty rich and so different, life is more bold.
Totally westernized style of acting, although Hong Kong people to change the perception of Chinese companies, but still attracted a lot of “big spenders Dandyism rich” argument.
Yung am very impressed.
In 2009 due to the huge loss of foreign exchange investment and resigning as chairman of CITIC Pacific Group, in September 2014, Larry Yung, Citic Securities and Futures Commission sued for “chao case” 4500 investors to discuss compensation.

Zongjing descendants of” decline “

compared Desheng offspring, brother Rong Zongjing descendants somewhat” decline “of the
Zongjing after the death of his son inherited his unassuming, luxury living concept, but it has no ability to guide the country in his career.
Before 1949, the son of Rong Rong Zongjing Hong-yuan and other students had a very luxurious life.
Hou Yun, vice president of Bank of Shanghai witnessed Yung Yuan, Hong three brothers at the time of extravagant living, Rong mansion all day gambling, dancing, open the banquet of wine.
Old house in Shanghai Song Road, Xia said, now the US consul general Huaihai Road, the Japanese Consul General’s residence are Rong Hong-yuan, Yung three homes.
September 4, 1948, Yung Yuan to “private cover foreign exchange, hoarding” charges arrested in court burst into tears on the Tilanqiao special criminal court.
Although Veterans Home Shizhao invited the other two lawyers, but Yung Yuan was detained for 77 days, backroom deals were more than 70 nights.
The November 18 sentencing hearing six months’ imprisonment, suspended for 2 years.
Yung Yuan badly hurt, and soon carry out most of the capital from the mainland, he went to Hong Kong.
Zongjing grandchildren currently are scattered in Hong Kong, Brazil, all over Germany.

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