Research About Bank Of Communications And Industry Development Of Modern China (1927-1937)

As an important financial institution during the period of the latter stage of Qing Dynastyand the Republic of China, Bank of Communications played a quite prominent role toeconomic development at that time. Especially after the National Government reorganizing itas the bank of developing the national industry, its function and business showed a trendtowards specialization, and made certain contribution to industry development and economymodernization of modern China. However, under the bad environment of social economy atthat time, it was difficult for Bank of Communications to have greater feats. Especially in1935, the department of treasury of National Government took extraordinary means, whichmade Bank of Communications controlled by national capital and its business emphasisdeviated from the right path. Bank of Communications couldn't change the government'spolicy and determine its own fate. Mainly from three respects, which are the loan to theindustry, the investment to the industry and new business such as establishing bank acceptingdraft, of Bank of Communications, this paper depicts both its operational activity and thedevelopment of the Chinese industry from 1927 to 1937. On one hand it described the Bank'sbusiness conduct from the beginning to the end, on the other hand it compared the Bank'sachievement with that of the other contemporary banks'. By elaborating the assist loan andthe special investment to the industry, it introduces and evaluates the industry loan movementmechanism and the selected representative industry loan of the Bank. At the same time, itinduces the diverse investment way which the Bank adopted to adapt to the specific situationof every corporations', namely the direct investment to create and manage, subscribing thecorporations' stocks, the confiscation mortgage and the creditor's rights transferred to thestockholder's rights. It expounds the remarkable achievements and special significance, to theindustry capital's turnover, of initiating and promoting the bank accepting draft service, todissect the co-relationship between the Bank and the industry development, expecting to drawlessons from history experience, and offering reference for the economic life of reality.