User:Donald Trung/Imperial Bank of China expansion

This page serves as "the editing history" of the English Wikipedia article Imperial Bank of China and is preserved for attribution. ✅. --Donald Trung (talk) 11:37, 9 August 2019 (UTC).

History


The Imperial Bank of China, which was China's first modern bank and China's first limited liability bank, opened for business in 1897. The Imperial Bank of China is also notable for being the first indigenous Chinese bank to employ foreigners as a part of their staff and it was the first of many Chinese banks to order their banknotes from foreign printers.

The bank was organised as a joint-stock firm. The Chinese official Sheng Xuanhuai (NOT Sheng Xuanghuai), who was a patron of the bank, adopted the internal regulations of HSBC, and its senior managers were foreign professionals. Following the early guidelines of the HSBC, the total number of banknotes issued by the Imperial Bank of China was at no time to exceed its paid-up capital, furthermore these guidelines also stipulated that ⅓ of it would have to be covered by a reserve in hard currency. Balance sheet data of the Imperial Bank of China is fragmentary but it suggests that these guidelines on banknote issuance may not have been actively used after 1906.

The fact that the IBC followed HSBC guidelines gave it a good reputation among foreign investors. Since the coffers of the imperial Chinese government had been depleted by the end of the nineteenth century, Sheng started selling equity in the new financial institution to bureaucracies both within and outside of the Chinese government. During this period Chinese official Zhang Zhidong feared that many imperial institutions would come in the hands of private owners but Sheng managed to maintain a good relationship with the imperial government despite these fears.

There is ample evidence to suggest that domestic Chinese financial institutions had lent a large number of capital to expatriate-run companies during the latter days of the Qing dynasty even when foreigner nationals were not among their main shareholders. In the year 1901 73% of the loan portfolio of the IBC was advanced to foreign firms..

After the proclamation of the Republic of China, the bank changed its English name to the Commercial Bank of China in 1912. The name more accurately translated its Chinese name and removed any link to the Qing Dynasty.

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