The film continues to slowly develop the flirtatious relationship between Xiao Hong and her neighbour Xiao Chen. However, one day, Xiao Chen's friend the Barber (Qian Qianli) sees Mr. Gu, a gangster and frequenter of the tea house where Xiao Hong works, take Xiao Hong out after getting a hair cut from the barbershop where the Barber works. The Barber then tells Ah Bing, the young peddler who is also friends with Xiao Chen, to follow Mr. Gu and Xiao Hong, and Ah Bing watches them buying cloth and eating together. When Ah Bing and the Barber tell Xiao Chen what they saw, Xiao Chen misunderstands and, thinking Xiao Hong is seeing other men, he runs back to his room, upset.