In this chapter, the reader is introduced to a new character named "Swan" . He is a young man who works as a shopkeeper in a shop in Shanghai. He has just returned from a trip to India, where he had spent a great deal of time with a woman named "Little Jon" , who is also a shopkeeper. The two of them exchange pleasantries, and the reader learns that Little Jon is engaged to be married to "Miss Swan," a young woman who works at the shop. The reader is impressed by Little Jon's good looks, but he is also impressed by Miss Swan's "weak character" and "poor character." The reader decides that he has changed his mind about life in Shanghai, and he wants to get to know each person better.