Research On The Loan And Investment Of China&South Sea Bank Of Hankou(1923-1938)

In the late Qing Dynasty and early Republic of China,Chinese banks gradually developed with the continuous infiltration of foreign bank capital.At this time,the domestic traditional financial industry exchange shop,native bank and other still active in the domestic market,and the formation of domestic Banks,foreign Banks together constitute the three groups of the potential.Especially after the Revolution of 1911,the bank of China rose rapidly and formed a great power with the support of the government.Under the impetus of this wave,overseas Chinese businessmen have also returned to invest in China,as the bank of the new financial institutions,to be their choice.In 1921,the China&South Sea Bank established in Shanghai by the Nanyang generation of sugar king Huang Yizhu,which is also the earliest overseas Chinese commercial bank in China.At that time,the Bank of China.Bank of Communications、Kin Cheng Banking Corporation.Continental Bank、The Yieh Yien Commereial Bank,etc.,which had already been established in Beijing,depended on the strength of the Northern Warlords government and had a firm foothold in the domestic market.The emerging China&South Sea Bank hired Hu Bijiang,former manager of the Beijing Branch of the Bank of Communications,as general manager and was responsible for specific business operations.Hu Bijiang,together withKin Cheng Banking CorporationContinental Bank、Yieh Yien Commereial Bank,set up four bank preparation banks to jointly issue bank notes from the China&South Sea Bank,forming a unique business model for the joint operations of North Four Banks.In order to expand the size and influence of the China&South Sea Bank,the head office decided to set up a branch in Hankou in 1923 to echo the previously established branches in Tianjin and Beijing to form an effective interactive network.After the establishment of China&South Sea Bank of Hankou,it soon became integrated into the local financial market.The manager of the China&South Sea Bank of Hankou is Zhuo Xiaomei,who is from a bureaucratic background;the deputy manager is Qian Nairong and the native bank is bom.The two were personally appointed by the general manager Hu Bijiang.In the operation of the Hankou,the two really played a great role,but the contradiction is constantly deepening.The Bank’s business model is the same as that of ordinary commercial banks,but in particular it is on the side of recurring funds and investment business.At the beginning of its establishment,this bank paid loans to prestigious banks and wealthy people in Hankou according to local financial habits.However,Hankou was soon affected by the financial turmoil in Shanghai,and the market was depressed.The China&South Sea Bank of Hankou suffered less losses because it actively recovered funds.In the wake of the turmoil in the 1925-year ticket,this bank began to assume a large number of direct government warlords borrowing money.As the national revolution continued to grow throughout the country,and the revolutionary army occupied Wuhan in October 1926,the the China&South Sea Bank of Hankou’s loan payment was unable to receive repayment on schedule.In January 1927,after the Wuhan National Government was established,it first issued and sorted out Hubei financial bonds and fiscal bonds with a view to repaying the old government’s arrears and warlords’arrears,and this bank participates in.At this time,Chiang Kai-shek set up the National Government in Nanjing.The political situation was tense and the division of Nanjing and Han was split.The financial industry in Wuhan received serious injuries.In view of this,the Ministry of Finance of the Nationalist Government of Wuhan has issued a centralized cash decree.The Shanghai Head Office has announced that it will suspend its business dealings with Hanban and will also stop other branches from conducting economic exchanges with China&South Sea Bank of Hankou,so this bank was in isolation.At this time,the Wuhan government continued to adjust its economic policies,resulting in heavy losses to this bank.In September of the same year,the merger of Nanjing and Han Dynasties led to the gradual suspension of the cash concentration decree.The business of the China&South Sea Bank of Hankou gradually recovered and was on track.Since entering the thirties,the business of the China&South Sea Bank of Hankou has been able to say that it has ushered in one after another peak,and the lending and investment of enterprises have also been maturing.It will lend money to local industrial and commercial enterprises and invest in its collateral.Since commercial loans are mainly based on flexible capital turnover,the time is short,with emphasis on quick turnover for profit.On the other hand,this bank’s investment in enterprises is dominated by collateral,such as the stock investment in Hankou companies,as well as the rental of ships.In fact,short-term investments are also the mainstay,and it is convenient and efficient to absorb idle funds effectively.In the lending to the government-run enterprises,for example,the lending to the Hubei official mines office in 1926 has been delayed for 10 years.Until 1935,the Hubei government authorities repaid with public debt.In this series of processes,we can see the game of rights between the local government and the bank.As an important business of the China&South Sea Bank of Hankou,lending and investment have always been the mainstay of its operations.This bank,as a local branch,has its own advantages,enhances its influence and credibility,and aims to achieve branches and headquarters win-win.