This paper uncovers a new historical material about Shuangyu Port in Liuheng Island (Zhejiang Province) for the first time - the story of Li Gui of Wuxi county proclaimed himself as the king of Xuanyun Island near Taicang, as recorded in Liang Xi Za Shi by You Tang. Xuanyun Island was simply Shuangyu Island because of the similar pronunciation and the same location. The Buddhist monk who used firearms in the story was perhaps a missionary from Europe. The merchants in Xuanyun Island traded cotton cloth from Jiangnan for gold, lacquer, honey, and spice from abroad. This story indicated that the commerce in Liuheng Island was still flourishing during late Jiajing period after the death of Zhu Wan.