User:Donald Trung/Piaohao (票號)

This page serves as "the editing history" of the English Wikipedia article "Piaohao" and is preserved for attribution.

•  Published. --Donald Trung (talk) 13:46, 1 December 2019 (UTC) .

Original draft

[[File:日昇昌匯通天下匾額.JPG|thumb|right|Royal inscribed board, saying ''Huitong Tianxia'' (匯通天下, "Financial exchange all over the world"), in [[Rishengchang]], [[Pingyao]].]] '''Piaohao''' ([[Traditional Chinese]]: 票號, literally "draft banks"), also known as ''piaozhuang'' (票莊), ''huihao'' (匯號), or ''huiduizhuang'' (匯兌莊), in [[Mandarin Chinese]], or ''[[Shanxi]] banks'' (山西票號) or ''Shansi banks'' in [[English language|English]], were a type of bank that existed in [[China]] during the [[Manchu people|Manchu]] [[Qing dynasty]] until approximately 1952. The ''piaohao'' were started by [[Shanxi merchants|merchants from the province of Shanxi]] who were often originally engaged in other businesses before they entered finance. The ''piaohao'' were mostly active in [[northern China]] while the ''[[qianzhuang]]'' were mostly active in the [[Southern China|south]]. The ''piaohao'' continued to be the dominant financial institutions of China until 1900 when more modern [[commercial bank]]s started being created by both the imperial and provincial governments, and the ''qianzhuang'' benefitted more from their close ties with foreign banks operating in Chinese [[treaty port]]s. During their heyday the ''piaohao'' had over 400 branches operating across the territory of the Qing dynasty and branches in other countries like [[Japan]], [[Korea]], [[Russia]], [[India]], and [[Singapore]]. After 1912 practically all ''piaohao'' either closed or were transformed into more modern types of banks. They continued to exist during both the [[Republic of China (1912–1949)|early Republic of China]] and the [[People's Republic of China]] until they were all finally [[nationalised]] alongside the ''qianzhuang'' and the rest of the Chinese financial industry in 1952. == Structure and business strategies == All ''piaohao'' were organised as [[sole proprietorship|single proprietaries]] or [[partnership]]s, where the owners carried [[unlimited liability]]. They concentrated on interprovincial remittances, and later on conducting government services. From the time of the [[Taiping Rebellion]], when transportation routes between the capital and the provinces were cut off, ''piaohao'' began involvement with the delivery of government tax revenue. ''Piaohao'' grew by taking on a role in advancing funds and arranging foreign loans for provincial governments, issuing notes, and running regional treasuries.<ref>R. O. Hall, ''Chapters and Documents on Chinese National Banking'' ([[Shanghai]]: ''Shangwu yinshuguan'', 1917), p. 3.</ref> The business model of the ''piaohao'' gave very little protection to the capital of the shareholders, furthermore the ''piaohao'' imposed a highly centralised management structure, and a tenure- and performance based incentive structure which was used to discipline distant employees in faraway branches.<ref name="WuMengShanxiPiaohao">{{cite web|url= http://etheses.lse.ac.uk/3415/|title= Traditions and innovations: An exploration of the governance structure, business strategy and historical development of the Chinese Shanxi piaohao, 1820s to 1930s. PhD thesis.|date=2016|accessdate=23 October 2019|author= Wu, Meng|publisher= The [[London School of Economics and Political Science]] (LSE).|language=en}}</ref> The history of the dominant houses in the Shanxi banking shows that it were [[Shanxi merchants|merchant families]] who originally began engaging in the monetary business, and they did this often without giving up their original trade.<ref name="ChinaKnowledgePiaohao">{{cite web|url= http://chinaknowledge.de/History/Terms/piaohao.html|title= ''piaohao'' 票號, the Shanxi Banks.|date=24 June 2016|accessdate=2 October 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref> The Shanxi merchants conducted themselves with the trade in [[Chinese tea]] and would travel north through [[Siberia]] to cities like [[Moscow]] and [[St. Petersburg]], it is suspected that the Shanxi merchants had observed how [[Western world|Western]] banking works there and attempted to emulate it, but the ''piaohao'' remained quite unique.<ref name="SSRNPiaohaoMorckYang">{{cite web|url= https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1586691|title= The Shanxi Banks (NBER Working Paper No. w15884).|date=12 April 2010|accessdate=29 October 2019|author= Randall Morck ([[University of Alberta]] - Department of Finance and Statistical Analysis; National Bureau of Economic Research (NBER); European Corporate Governence Institute; Asian Bureau of Finance and Economic Research) & Fan Yang ([[University of Saskatchewan]])|publisher= [[Social Science Research Network]] ([[Elsevier]]). |language=en}}</ref> Most ''piaohao'' were founded based on a joint investment, or ''hehuo'' (合伙). Only a small number of ''piaohao'' only had a single investor.<ref name="ChinaKnowledgePiaohao"/> The shares held by managers carried non-binding votes that were cast exclusively in management meetings, meanwhile the shares of the shareholders (or owners) carried votes which were cast only on Grand Assessment Days,<ref name="AcademiaPiaohaoMorckYang">{{cite web|url= https://www.academia.edu/11901191/The_Shanxi_Banks|title= The Shanxi Banks.|date=12 April 2010|accessdate=31 October 2019|author= Randall Morck ([[University of Alberta]] - Department of Finance and Statistical Analysis; National Bureau of Economic Research (NBER); European Corporate Governence Institute; Asian Bureau of Finance and Economic Research) & Fan Yang ([[University of Saskatchewan]])|publisher= [[Academia.edu]]|language=en}}</ref> these days were generally held after each [[Fiscal year|fiscal cycle]] (this was typically 3 or 4 years) and allowed the shareholders to fire or retain managers and reallocate their shares.<ref name="AcademiaPiaohaoMorckYang"/> The shares that were inherited through death or retirement were made into a special non-voting class of shares with an expiration date that were only paid out divided, this was done to motivate long-term thinking and to keep the heirs of shareholders outside of the decision‐making process.<ref name="AcademiaPiaohaoMorckYang"/> A major difference between the ''piaohao'' and the ''[[qianzhuang]]'' was the fact that the ''qianzhuang'' banking companies grew out of the money-changing businesses known as the ''qianpu'' and would engage in business typical of banks such as providing loans, savings accounts with interest, and so forth, while the ''piaohao'' would primarily facilitate the sending of remittances, that is, the sending of money, across the Chinese realm.<ref name= "LloydEastmanPiaohao">Lloyd Eastman, Family, Fields, and Ancestors: Constancy and Change in China's Social and Economic History, 1550-1949, Oxford University Press (1988), pages 112-114.</ref> Furthermore ''qianzhuang'' tended to be very locally run operations and were typically run only by a single family, or a close set of associates,<ref name= "LloydEastmanPiaohao"/> in contrast the ''piaohao'' maintained branch offices across China, this allowed money to be paid into one branch office and withdrawn from another branch office - essentially "sent" - without there to be any actual physical silver [[sycee]]s or [[String of cash coins (currency unit)|strings of copper-alloy cash coins]] having to be arduously transported, under heavy guard, across great distances bringing many risks with them.<ref name= "LloydEastmanPiaohao"/> The height of the capital stock of the ''piaohao'' ranged from about 20,000 [[tael]] of [[silver]] to as much as 500,000 taels of silver, yet because most of the ''piaohao'' reserved an amount of capital protected, known as ''huben'' (護本) or ''beiben'' (倍本), the operative capital of the banks was much less.<ref name="ChinaKnowledgePiaohao"/> The bank reserves were kept in the head office, known as the ''zonghao'' (總號), this we also the place where the household of the bank owner was registered. The ''piaohao'' tended to have branches, kitten as ''fenhao'' (分號) in every large Chinese city.<ref name="ChinaKnowledgePiaohao"/> This made the remittance of money easily possible between the head office and all of its branch offices. The ''piaohao'' had branches throughout China, but the core area of operation was [[northern China]].<ref name="ChinaKnowledgePiaohao"/> Every three or four years, an account known as the ''jiezhang'' (結賬) was provided to the shareholders of the ''piaohao'', and dividends were then distributed among them. The the most common form of "shares" was money (銀股), but some shareholders would guarantee their "shares" with their office and their expected salary in a system that was known as a "person-based share", in [[Mandarin Chinese]] this was called ''rengu'' (人股) or ''dingshengu'' (頂身股).<ref name="ChinaKnowledgePiaohao"/> The ''piaohao'' operated in daily business mainly with monetary remittances. The remittance fee, known as ''huifei'' (匯費) or ''huishui'' (匯水), depended on the distance of the transaction, the urgency, and the quality of the silver that was paid to the remitting bank. The remittance fee that was to be paid by the remitter was known as liqian (力錢). It was either 2 taels (雙力) per 100 taels of silver that was being remitted, or only 1 tael (單力).<ref name="ChinaKnowledgePiaohao"/> Local differences in the value of silver ingots could be used by the ''piaohao'' for profits by arbitrage business, this was known as ''yaping case'' (壓平擦色).<ref name="ChinaKnowledgePiaohao"/> Another important part of the ''piaohao'' business model was the assaying of silver and the production of silver ingots (紋銀), these silver ingots are commonly known in [[English language|English]] as "[[sycee]]s".<ref name="ChinaKnowledgePiaohao"/> Because the ''piaohao'' shareholders shared unlimited liabilities, when these changing market forces materialised, many of the shareholders of the ''piaohao'' bankrupt, while some shareholders would turn to investments elsewhere and abandoned the ''piaohao'' model altogether.<ref name="WuMengShanxiPiaohao"/> The ''piaohao'' had a system of shares known as dual class shares, these let the owners vote only on insiders' retention and compensation every 3 or 4 years.<ref name="SSRNPiaohaoMorckYang"/> The shares of the insiders had the dividend plus votes in meetings advising the general manager of the ''piaohao'' on their work such as lending or other business decisions, and were swapped upon the death or retirement of the holder for a ⅓ inheritable non-voting equity class, dead shares, with a fixed [[expiry date]].<ref name="SSRNPiaohaoMorckYang"/> These shares were augmented by contracts that would allow the enslavement of insiders' wives and their children, as well as their relative's servants as hostages, these governance mechanisms prevented insider fraud and propelled the ''piaohao'' to gain an empire-wide dominance over the Chinese financial sector.<ref name="SSRNPiaohaoMorckYang"/> Due to this system the ''piaohao'' had remained fraud-free during their entire existence.<ref name="SSRNPiaohaoMorckYang"/> An assortment of rules prevented abuses of power by branch insiders such as self-dealing, them having side interests which could become a [[conflict of interest]], or even engaging in any other business interests. Neither were insiders allowed to lend their savings to anyone.<ref name="SSRNPiaohaoMorckYang"/> Branch employees were also not granted any leave with the notable exception being the [[funeral]]s of their parents, furthermore branch employees were forbidden from taking their family members with them or marrying while on duty.<ref name="SSRNPiaohaoMorckYang"/> Severe restrictions were also placed on communication as branch employees were only allowed to write a single letter home each month, but the letter was to be reviewed by the head office of the ''piaohao'' in Shanxi before it was forwarded to the family of the branch employee.<ref name="SSRNPiaohaoMorckYang"/> During the height of the ''piaohao'', the years 1880 to 1900, their paid out dividends averaged 12,000 tael (or 18,000 [[Spanish dollars]]) per fiscal cycle.<ref name="AcademiaPiaohaoMorckYang"/> These dividends were huge fortunes for China at the time, comparatively, a county administrator, or ''zhixian'', would earn an annual salary of 45 taels of silver (or $67.50 in Spanish dollars).<ref name="AcademiaPiaohaoMorckYang"/> During this time the province of Shanxi’s best and brightest men were well advised to forsake the Confucian civil service for careers in the banking sector because of this.<ref name="AcademiaPiaohaoMorckYang"/> Unlike shares, securities did not expire, they passed to heirs of its owners, and paid interest rather than dividends.<ref name="AcademiaPiaohaoMorckYang"/> These policies may well have sharpened incentives to help the banks succeed, but it also showed that the voting rules employed by the ''piaohao'' could change overtime.<ref name="AcademiaPiaohaoMorckYang"/> == History == {{See also|History of banking in China}} === Early history === [[File:Pingyao Rishengchang Jiuzhi 2013.08.25 06-53-19.jpg|thumb|left|[[Rishengchang]], the first draft bank in China.]] The ''piaohao'' were an early Chinese banking institution were known as "Shanxi banks" by foreigners because they were owned primarily by [[Shanxi merchants]]. The exact origins of the ''piaohao'' remain unclear, and money-order services, or remittance banks, may or may not have existed in one form or another, at least in some regions of China, as early as the [[Ming dynasty]] period.<ref name= "LloydEastmanPiaohao"/> The ''piaohao'' were, despite [[Economic history of China before 1912|China's long economic history]], the first institutions to offer a full range of banking services.<ref name="AcademiaPiaohaoMorckYang"/> Shanxi became a banking centre during this era, the arising of a banking centre in a remote northern inland Chinese province is akin to the [[United States]]' financial centre being in the remote [[Fargo, North Dakota|Fargo]], [[North Dakota]], rather than in [[Manhattan]].<ref name="AcademiaPiaohaoMorckYang"/> The first (documented) "piaohao" [[Rishengchang]] originated from Xiyuecheng Dye Company [[Pingyao]] in central [[Shanxi]].<ref>Huang Jianhui, ''Shanxi piaohao shi'' ([[Taiyuan]]: Shanxi jingji chubanshe, 1992), pp. 36-39.</ref> The Rishengchang was founded in 1823 by Li Daquan, the owner of the Xiyucheng, a dyed goods company that would purchase raw materials in the province of [[Sichuan]] and ran stores in the cites of [[Beijing]], [[Shenyang]], [[Tianjin]], and others.<ref name="AcademiaPiaohaoMorckYang"/> [[Lei Lutai]], possibly a Tianjin (or Beijing) manager of this company, observed expensive shipments of silver often would pass each other, going in opposite directions for vast distances, this inspired Lei to see a business opportunity.<ref name="AcademiaPiaohaoMorckYang"/> Lei suggested to his boss, Li Daquan, around the year 1823 that this presented an opportunity to replacie expensive private security, wagons, and pack animals with a clearing house for the interregional transfer of money, the settlement of accounts, deposit accounts, loans, and [[currency exchange]] services.<ref name="AcademiaPiaohaoMorckYang"/> The Rishengchang was capitalised with 300,000 taels of silver (or about 450,000 [[Spanish dollar|dollars]]) by Li Daquan, it is possible that Lei Lutai had added 20,000 taels of silver.<ref name="AcademiaPiaohaoMorckYang"/> Lei was the first general manager of the Rishengchang, with [[Mao Hongsui]] and [[Cheng Dapei]] as the bank's assistant managers.<ref name="AcademiaPiaohaoMorckYang"/> After a few years Mao Hongsui ran into some disagreements with Lei Lutai over business strategy and within a couple of years Mao had organised 5 more banks. In turn, the managers of these banks also started leaving and had also created their own banks.<ref name="AcademiaPiaohaoMorckYang"/> Between the years 1823 to the early 1840s, the ''piaohao'' would experience rapid growth by providing bank drafts as a service for traveling Chinese merchants.<ref name="AcademiaPiaohaoMorckYang"/> These bank drafts could be obtained if a merchant would deposit money in cash at a local branch office, the draft was then ripped in half and one half was given to the seller as an [[IOU]] and the other to the branch of the bank of the seller. After the buyer would confirm the receipt of the goods, the seller could then claim the missing half of the bank draft that was issued to join at his branch office and effect the transfer of monetary funds into his account there.<ref name="AcademiaPiaohaoMorckYang"/> To deal with the transfer of large amounts of cash from one branch to another, the company introduced drafts, cashable in the company's many branches around China. Although this new method was originally designed for business transactions within the Xiyuecheng Company, it became so popular that in 1823 the owner gave up the dye business altogether and reorganised the company as a special remittance firm, Rishengchang Piaohao. In the next thirty years, eleven ''piaohao'' were established in Shanxi province, including [[Pingyao]] and neighboring counties of [[Qi County, Shanxi|Qi County]], [[Taigu County|Taigu]], and [[Yuci District|Yuci]]. By the end of the nineteenth century, thirty-two ''piaohao'' with 475 branches were in business covering most of China, and the central Shanxi region became the ''[[de facto]]'' financial centres of Qing China.<ref>Shanxi Provincial Academy of Social Sciences, ed., ''Shanxi piaohao shiliao'' (山西票号史料) ([[Taiyuan]]: Shanxi jingji chubanshe, 1992), pp. 36-39.</ref> During stable times the ''piaohao'' were based on [[Confucianism|Confucianist]] hierarchical structures and imperial edicts, usually disputes were not brought to any formal courts and the act of taking someone to court wasn't only ineffective but it was considered shameful in traditional Chinese culture.<ref name="AcademiaPiaohaoMorckYang"/> The insider laws of the ''piaohao'' were based on Confucian traditions and the laws themselves can be described as "a game of ritual formalism".<ref name="AcademiaPiaohaoMorckYang"/> Because the descendants of merchants (a class which includes bankers) were not allowed to take any [[Imperial examination|civil service examinations]] for 3 generations the majority of the Chinese magistrates came from other classes of the [[four occupations]], mostly from the land owning classes.<ref name="AcademiaPiaohaoMorckYang"/> Because the merchant class couldn't rely on the magistrates for fair justice they had to create their own system of enforcing contracts, this system included a general manager chosen by the shareholders, these general managers usually had a team of vice presidents that were tasked to supervise the clerks and other bank employees.<ref name="AcademiaPiaohaoMorckYang"/> During their early years, the ''piaohao'' would pay depositors interests of 0.2% to 0.3% per month and lent out money at an interest rate of 0.6% to 0.7% per month.<ref name="AcademiaPiaohaoMorckYang"/> The biggest clients of the ''piaohao'' were merchants and various wealthy individuals, especially the [[Chinese nobility|nobility]] with whom the ''piaohao'' had rather connections.<ref name="AcademiaPiaohaoMorckYang"/> The ''piaohao'' would also record loans made from one party to another.<ref name="AcademiaPiaohaoMorckYang"/> The [[society of the Qing dynasty]] was one where the general population tended to have a mistrust of outsiders, usually people only trusted their direct family members or people with whom they had established ties that were longstanding. In this society large business enterprises that were run by professionals were largely disfavoured.<ref name="AcademiaPiaohaoMorckYang"/> Despite these societal factors, Chinese merchant [[guild]]s, which were monopolistic in nature, had found a way to circumvent these issues by vouching for traveling merchants that were paying members.<ref name="AcademiaPiaohaoMorckYang"/> Some Chinese merchant guilds would accept members from many regions of China, the Shanxi Dyed Goods Guild, of which the Rishengchang was a member, was restricted to families that originated in Pingyao county, Shanxi and these types of restrictions would later also be adopted to other ''piaohao'' for their hiring practices.<ref name="AcademiaPiaohaoMorckYang"/> Many ''piaohao'' would only hire people from the province of Shanxi while other ''piaohao'' would completely restrict their hiring to only a single county.<ref name="AcademiaPiaohaoMorckYang"/> For their hiring practices the ''piaohao'' would check an applicant's family background for 3 generations, this was because families rarely moved in China to distant places and old neighbours intimately knew each others' families as well as each others' family histories.<ref name="AcademiaPiaohaoMorckYang"/> The background check and guarantor from the applicant's native county ensured both the loyalty and total honesty of the employees that were hired by the ''piaohao''; but this system also protected them. If a dispute arose between the employee and the ''piaohao'', the guarantor undertook negotiations with the ''piaohao'' to make sure that the manager was not impugned unjustly.<ref name="AcademiaPiaohaoMorckYang"/> The decision to completely limit the fulfillment of staff only with people from the same region or whose ancestral roots lay in the same region proved to be a rather powerful governance mechanism.<ref name="AcademiaPiaohaoMorckYang"/> The dividend paid out to the managers was allocated to their blood relatives back in the Shanxi province, which meant that social and economic status of their families depended on their performance, and any malfeasance from these managers would endanger not just their families’ economic and social status back home, but also their freedom and lives.<ref name="AcademiaPiaohaoMorckYang"/> A potential employee with clean background would present a personal guarantee letter from an eminent personage in his native county for the bank.<ref name="AcademiaPiaohaoMorckYang"/> === Rise of the ''piaohao'' === From the 17th century onwards China experienced a growing business of interregional trade which required a more elaborated system of credit, exchange, and remittance than that which was already in place. This demand was behind the early success of the ''piaohao'' as interregional banks. Paramount to this development were local banks in the districts of [[Pingyao]], [[Qi County, Shanxi|Qixian]], and [[Taigu County|Taigu]] all in the province of [[Shanxi]].<ref name="ChinaKnowledgePiaohao"/> Because the credit business was overwhelmingly controlled by the merchant-banks from the province of Shanxi, they were also commonly known as ''Shanxi piaohao'' (山西票號), which is how they came to be known as the ''Shansi Banks'' to foreigners. [[Shanxi merchant]]s were so much related to the financial business that they received nicknames like ''kedui'' (克兌, "changers") or ''keqian'' (克錢, "moneylenders").<ref name="ChinaKnowledgePiaohao"/> The ''piaohao'' helped promote interregional trade in China.<ref name="AcademiaPiaohaoMorckYang"/> The most important of the three banking groups or ''sanbang'' (三幫) in Shanxi were the Pingyao-based [[Rishengchang]] Bank (日升昌票莊),<ref name="AcademiaPiaohaoMorckYang"/> the Pingyao-based [[Five United Weizi Banks]] (蔚字五聯號), the Qixian-based [[Heshengyuan Bank]] (合盛元號), a bank based on the [[Chinese tea]] trade, or the Taigu-based [[Zhichengxin Bank]] (志誠信號), who were former silk traders.<ref name="ChinaKnowledgePiaohao"/> The members of the Pingyao-based Five United Weizi Banks include:<ref name="ChinaKnowledgePiaohao"/> * [[Weitaihou]] (蔚泰厚); * [[Weifenghou]] (蔚豐厚); * [[Weishengzhang]] (蔚盛長);<ref>Liu Jianmin (劉建民), Wang Xuenong (王雪農), ed. (2001), ''Zhongguo Shanxi minjian piaotie'' (中國山西民間票帖) ([[Beijing]]: Zhonghua shuju), page 186. (in [[Mandarin Chinese]]).</ref> * [[Xintaihou]] (新泰厚, and * [[Tianchengheng]] (天成亨), a company that was formerly operating in the silk business before it became a bank. The ''piaohao'' acquired a vast network of customers throughout China by establishing a widespread network of branch offices to provide their services in more places, furthermore the ''piaohao'' were responsible for inventing various types of draft, and creating more pricing remittance fees on a diverse range of factors.<ref name="WuMengShanxiPiaohao"/> The ''piaohao'' would oftentimes only hire people from the province of Shanxi, or only from a single county, for example the Rishengchang only hired people from Pinyao.<ref name="AcademiaPiaohaoMorckYang"/> This was because in traditional culture outsiders were frowned upon and many people often only preferred to deal with only their direct family or people from the same area as them.<ref name="AcademiaPiaohaoMorckYang"/> During the heydays of the ''piaohao'' there were a total of 32 independent banks in operation, with over 400 branch offices spread throughout China and also some ''piaohao'' had branch offices abroad in the [[Japanese Empire|Japanese]] cities of [[Tokyo]], [[Kobe]], and [[Yokohama]], the cities of [[Incheon]], [[Joseon|Korea]], [[Moscow]], [[Russian Empire|Russia]], [[Kolkata|Calcutta]], [[British Raj|British India]], or the British [[colony of Singapore]].<ref>Albert M. Craig, ''The Heritage of Chinese Civilization, Third Edition, Prentice Hall'' (2011), pages 101-103.</ref><ref name="ChinaKnowledgePiaohao"/> The Beijing branch of the Rishengchang had a large plate (竖匾) above its main entrance with the text ''Huitong Tianxia'' (匯通天下, "Financial exchange all over the world"), for many years.<ref name="AcademiaPiaohaoMorckYang"/> In Qing China both the [[Chinese nobility|feudal nobility]] and the government bureaucrats were ''[[de facto]]'' above the law.<ref name="AcademiaPiaohaoMorckYang"/> These classes had the ability to confiscate the wealth of the general population, including the Chinese merchants, with impunity, furthermore because the nobles and government bureaucrats could manipulate the Chinese legal system into their favour there were no chances for the wronged parties to redress these confiscations.<ref name="AcademiaPiaohaoMorckYang"/> As the ''piaohao'' grew to become more prominent in the Chinese financial market, they presented a more attractive target for such predation by those in power. Consequently, the ''piaohao'', like other Shanxi merchants, sought to ingratiate themselves with important government officials to avoid such a fate occurring to them.<ref name="AcademiaPiaohaoMorckYang"/> In order to gain more favourable relationships with the government of the Qing dynasty the ''piaohao'' would directly finance its expenditures. The ''piaohao'' also handled "donations" given to the Qing dynasty that bought honorary titles and they invested in future mandarins by lending funds to them for their travels to the capital city of Beijing where they have to take the Confucian civil service examinations.<ref name="AcademiaPiaohaoMorckYang"/> The Beijing branches of many ''piaohao'' would heavily entertain the Chinese government officials and feudal nobles.<ref name="AcademiaPiaohaoMorckYang"/> This policy would provide returns in several ways to the ''piaohao'', as it not only attracted deposits of wealth from courted Chinese government officials and feudal nobles, but also entire budgets of ministries, the ministries often paid no interest in order for the ''piaohao'' to keep the good graces of the government.<ref name="AcademiaPiaohaoMorckYang"/> === Role of the ''piaohao'' during the First Opium War === While the 19th century was a disastrous time period for the Qing dynasty, the ''piaohao'' managed to turn each and every disaster that China faced into a profitable and lucrative business opportunity for them.<ref name="AcademiaPiaohaoMorckYang"/> The [[Treaty of Nanking]] stipulated that the government of the Qing dynasty had to pay the [[United Kingdom of Great Britain and Ireland|United Kingdom]] a sum of 21.000.000 [[Spanish dollar]]s in war indemnities.<ref name="AcademiaPiaohaoMorckYang"/> To raise this amount of money, the government of the Qing dynasty dynasty had issued an order to each Chinese provincial government to transfer a levy of silver to British agents that were stationed in the assigned [[treaty port]]s and enclaves.<ref name="AcademiaPiaohaoMorckYang"/> However, this proved to be a predicament for inland provincial governments as they were unable to transport huge amounts of silver securely from the Chinese interior to the faraway treaty ports. General manager of the Rishengchang, Lei Lutai, saw an opportunity in this crisis. Lei instructed branch managers of the Rishengchang that were situated in the inland provinces of China to offer their Chinese provincial governments bank drafts to transfer the silver to the designated treaty port cities before the deadline with the British was met.<ref name="AcademiaPiaohaoMorckYang"/> In preparation for this move, Lei had ordered the move of large amounts od silver to the port branch offices of the Rishengchang, so when the provincial government representatives would arrive, sufficient quantities of silver would await them there.<ref name="AcademiaPiaohaoMorckYang"/> This plan had proved to work flawlessly for both the Chinese provincial governments and the Rishengchang and they had averted an impending disaster.<ref name="AcademiaPiaohaoMorckYang"/> === During the Taiping Rebellion === The most important customers of the ''piaohao'' were the Chinese merchants who were conducting in interregional trade, known as ''bangji maoyi'' (埠際貿易), this changed following the large [[Taiping Rebellion]] that had affected Chinese society and its government immensely.<ref name="ChinaKnowledgePiaohao"/> The ''piaohao'' began to become trusted by the government to take over various tasks such as the remittance of funds, which were known as ''huijie'' (匯解), to other Chinese provinces in a process known as ''xiekuan'' (協款) or ''xiexiang'' (協餉), or by providing services such as the advanced payment for imperial troops known as ''xiangyin'' (餉銀) or ''[[junxiang]]'' (軍餉), or by providing the funds for the infrastructure of the local Chinese governments, these funds were known as the ''xinjin'' (薪金).<ref name="ChinaKnowledgePiaohao"/> The Taiping Rebellion had a major impact on the ability of the government of the Qing dynasty to collect taxes, the loss of many of its [[South China|southern provinces]] to rebel forces deprived the Qing of millions of taxpayers and it also cut Beijing off from remaining provinces and their resources in [[Southwest China]]. In order to help transfer funds and government revenues through rebel territory, the government of the Qing dynasty sought the help of the ''piaohao'', the ''piaohao'' again used bank drafts for these monetary transfers.<ref name="AcademiaPiaohaoMorckYang"/> Thereafter, the military budget (''junxiang''), poll tax (''dingliang''), sale tax (''lijin''), and provincial indemnity levies (''gesheng ding'e tanpai waizhai'')<ref name="AcademiaPiaohaoMorckYang"/> all moved about the territory held by the Qing through interest‐free accounts at the ''piaohao'', which lent at 7 li to 8 li.<ref name="AcademiaPiaohaoMorckYang"/> The ''piaohao'' also received many other beneficial business deals from the Chinese government during the Taiping Rebellion, the ''piaohao'' offered the deposit of funds, which were known as ''cunkuan'' (存款), and credits, which were known as ''fangkuan'' (放款), to the local government, which were then called the ''guankuan'' (官款), state officials, or private persons. The reputation of the ''piaohao'' during this era was very high and they greatly profited from this reputation.<ref name="ChinaKnowledgePiaohao"/> A huge number of people confided them their money and [[Wealth|savings]], this was done in spite of the low interest rates given by the ''piaohao'', these low percentages were in contrast to the very high interest rates that they placed on credits.<ref name="ChinaKnowledgePiaohao"/> Credits were also given to smaller banks in [[southeast China]] that were known as the ''[[qianzhuang]]'', pawnshops, that were known as the ''[[diandang]]'' (典當), and the great merchant houses of China.<ref name="ChinaKnowledgePiaohao"/> Finally the ''piaohao'' took over the [[Office selling (China)|office selling business]] the purchase, or ''juan guan'' (捐官), of Qing dynasty [[Brevet (military)|brevet titles]] (銜) or they advanced money for the purchase of a vacancy, known as ''mou que'' (謀缺).<ref name="ChinaKnowledgePiaohao"/> At the height of the Taiping rebellion the business of transacting funds and revenue became even more dangerous for the Chinese government.<ref name="SandrockSilverTaelNotes">{{cite web|url= http://thecurrencycollector.com/pdfs/Ching_Dynasty_Silver_Tael_Notes_-_Part_III.pdf|title=IMPERIAL CHINESE CURRENCY OF THE TAI'PING REBELLION - PART III - CH'ING DYNASTY SILVER TAEL NOTES by John E. Sandrock.|date=1997|accessdate=29 June 2019|author= John E. Sandrock|publisher= The Currency Collector.|language=en}}</ref> In order to overcome these new difficulties the existing ''piaohao'' were greatly expanded to accommodate this demand. The principal function of the ''piaohao'' under normal circumstances was that to send currency to more distant places in payment for traded [[goods and services]].<ref>Vissering G (1914) On Chinese currency: preliminary remarks on the monetary and banking reform in China, vol 2. De Bussy, [[Amsterdam]].</ref><ref name="SandrockSilverTaelNotes"/> For this service the remittance banks charged a fee which ranged from 2% to 6%. During the usual course of business, these banks also held Qing Chinese government funds for disbursement. As the ''piaohao'' were strongly represented in the north of China, the Chinese government saw it as only natural that these banks would be chosen to disburse the [[Hubu Guanpiao]] tael notes through their services.<ref>Pomeranz K (1993) ''The making of a hinterland: state, society and economy in inland North China'', 1853–1937. [[University of California Press]], [[Berkeley, California|Berkeley]].</ref> The ''piaohao'' were often active in the assigned [[treaty ports]] cultivating the business of both Chinese merchants and foreigner traders alike. The ''piaohao'' tended to be very competitive in their nature and cooperated extensively with other branches of banking corporations within their own sphere, they would often send crucial banking-related news to member banks by [[carrier pigeon]].<ref name="SandrockSilverTaelNotes"/> Prior to the introduction of the [[railroad]] to China, the Chinese economy relied heavily on ''piaohao'' to finance inter-city commerce. In [[Northern China]] the preferred method of land transportation was the [[camel]] due to the fact that these animals could cope with the conditions of Northern China while many other animals couldn't, and the ''piaohao'' employed camels in the north for transportation.<ref name="SandrockSilverTaelNotes"/> The ''piaohao'' and other Chinese banking companies were essential in connecting the various monetary systems that circulated in China at the time by facilitating interregional trade and commerce, providing credit for merchants, and cooperating in times of crisis. It was customary for example for the Shanghai banks to make advances to [[Junk (ship)|junk]] owners who were engaged in the trade of carrying tribute rice to the north, holding their vessels as collateral. These junks after having unloaded their rice in the port, would return with shipments of oil, peas, bean cakes, and other products for trade.<ref name="SandrockSilverTaelNotes"/> The ''piaohao'' benefitted greatly from the "great contribution campaign", or the ''dajuan'' (大捐).<ref name="ChinaKnowledgePiaohao"/> The "great contribution campaign" was instigated by the government of the Qing dynasty to cover their military expenses to continue fighting the [[Taiping Heavenly Kingdom]].<ref name="ChinaKnowledgePiaohao"/> During the "great contribution campaign" the Chinese government managed to advance 2,600,000 taels of silver for the purchasing of offices.<ref name="ChinaKnowledgePiaohao"/> === Role of the ''piaohao'' during the Second Opium War === Following the foreign victory during the [[Second Opium War]], the Qing retaliated by torturing and killing British envoys,<ref name="AcademiaPiaohaoMorckYang"/> this act added an additional 8.000.000 taels of silver to the war debt of the Qing dynasty to the Western powers and the Qing was forced to legalise both [[Christianity]] and [[opium]] as well as opening more of its ports to foreign traders where extrateritorial rights were granted to foreign enclaves.<ref name="AcademiaPiaohaoMorckYang"/> The ''piaohao'' were once again tasked with the transfer of funds via bank drafts by the inland provincial governments.<ref name="AcademiaPiaohaoMorckYang"/> === Modernisation of China and the role of the ''piaohao'' === By the 19th century, the ''piaohao'' had become quite well-established and widespread, handling as much as half of all banking activity in the Qing Empire, this would last until the establishment of an official modern postal service in the 1890s which took over the role of the ''piaohao'' as a remittance service.<ref name= "LloydEastmanPiaohao"/> The ''piaohao'' were crucial players in the modernisation of China during the end of the 19th century. The ''piaohao'' gave credit for investing in industrialisation and infrastructure such as the construction of factories and railways across China.<ref name="ChinaKnowledgePiaohao"/> In fact [[Ulrich Theobald]] from the website [[Chinaknowledge]].de argues that many of these improvements would not have been possible without financial aid from the ''piaohao''.<ref name="ChinaKnowledgePiaohao"/> The [[Shanghai]] ''piaohao'' offered the subscription, or ''rengou'' (認購), of bonds like the Zhaoxin share from the year 1898, which was also known as the ''Zhaoxin gupiao'' (昭信股票), or the bonds issued to finance the Boxer Indemnity, which were known as the ''gengzi beikuan'' (庚子賠款). They also issued shares themselves which did, as that of the [[Dadetong Bank]] (大德通票號), which yielded enourmous profits for the banks.<ref name="ChinaKnowledgePiaohao"/> The shares were valued at 850 taels of silver in the year 1889, later their shares stood at 3,150 taels of silver in the year 1896, 4,024 taels in silver in the year 1990, and at 17,000 taels of silver in the year 1908.<ref name="ChinaKnowledgePiaohao"/> During the latter half of the 19th century, a group of southern Chinese banks known as the ''nanbang piaohao'' (南幫票號), which were usually called ''[[yinhao]]'' (銀號) was created by local traders and merchants in the southern province of [[Zhejiang]]. These were, for instance, the [[Yuanfengrun Bank]] (源豐潤票號) or the [[Yishanyuan Bank]] (義善源票號).<ref name="ChinaKnowledgePiaohao"/> The ''piaohao'' would find China’s social and business environment became more unpredictable as it was expanding, this coincided with the managers of the ''piaohao'' reaching the zenith of their competence and the highly centralised structure of the ''piaohao'' organisations would begin to show lower returns on investment.<ref name="WuMengShanxiPiaohao"/> These high financial leverages paired with a narrowed profits margin would also indicate the hidden risks that the ''piaohao'' faced.<ref name="WuMengShanxiPiaohao"/> During this time period the ''qianzhuang'' banks became more important in the Chinese financial sector, as they had close connections to the foreign banking companies that began investing in China, particularly in the treaty port city of Shanghai. Despite the rise of the ''qianzhuang'', the financial power of the ''piaohao'' would still allow them a superior position during this era, as many of the smaller ''qianzhuang'' would often borrow money from them.<ref name="ChinaKnowledgePiaohao"/> In 1875, 24 ''piaohao'' founded the common office, the Shanghai Banking Association, or the ''Shanghai huiye gongsuo'' (上海匯業公所). The ''piaohao'' were, furthermore, backed by the government of the Qing dynasty, the officialdom, wealthy merchants and merchant families, and the landowner class.<ref name="ChinaKnowledgePiaohao"/> Contact between the ''piaohao'' and foreign banks or foreign merchants at this time was rather indirect, and passed only through the mediation of the local ''qianzhuang''.<ref name="ChinaKnowledgePiaohao"/> During the [[Boxer Rebellion]] the ''piaohao'' directly financed the Qing court as it fled from Beijing to [[Xi'an]] in 1900 following the occupation of the former by foreign powers.<ref name="AcademiaPiaohaoMorckYang"/> Around the year 1900 the heyday of the ''piaohao'' was over, even if they still had operating capital of more than 200 million taels of silver. The ''qianzhuang'' had gradually taken over the fields of business where the ''piaohao'' also operated.<ref name="ChinaKnowledgePiaohao"/> In addition to that, each province of the Qing dynasty had founded a government bank, which were known as the ''guanyin qianhao'' (官銀錢號), and the central government of the Qing dynasty, too, had created national banks such as the [[Commercial Bank of China]], the [[Bank of Communications]], and the [[Bank of the Ministry of Revenue]] (which was later renamed to the Ta-Ching Government Bank).<ref name="ChinaKnowledgePiaohao"/> During the [[Xinhai Revolution]] it became very common for the branch offices of the ''piaohao'' to be subject to looting which caused immense financial losses, furthermore the chaos caused many bad loans to not be repaid and many people started withdrawing their deposits.<ref name="WuMengShanxiPiaohao"/> During this era Chinese commercial banks and foreign banks started to poach the staff of the ''piaohao'' when they started to penetrate the Chinese remittance market.<ref name="WuMengShanxiPiaohao"/> === After the Xinhai Revolution === After the year 1912 practically all ''piaohao'' closed or were transformed into more modern types of [[commercial bank]]s.<ref name="ChinaKnowledgePiaohao"/> Following the Xinhai revolution [[rule of law]] collapsed causing many provinces to declare their secession from the new republic making China merely into a geographic region rather than a political ones.<ref name="AcademiaPiaohaoMorckYang"/> The ''piaohao'' were forced to either liquidate themselves voluntarily or fall into bankruptcy.<ref name="AcademiaPiaohaoMorckYang"/> Various factors were responsible for the ultimate fall of the ''piaohao'' following the fall of the Qing dynasty.<ref name="AcademiaPiaohaoMorckYang"/> Foreign banking and financial companies that were operating in treaty ports and foreign enclaves benefited from relative rule of law and legal innovations of the Western world such as [[limited liability]].<ref name="AcademiaPiaohaoMorckYang"/> Rival commercial Chinese banks gained similar flexibility under a 1901 [[German Empire|German]] Civil Code, and other Chinese commercial banks also took root in the foreign enclaves despite legal discrimination that they were facing there.<ref name="AcademiaPiaohaoMorckYang"/> Modern technologies like railroads and telegraph lines let all such entrants establish account clearing operations that would rival the clearing houses already established by the ''piaohao'' at a lower cost.<ref name="AcademiaPiaohaoMorckYang"/> The rival banks, both foreign and Chinese, could charge less money for loans than the ''piaohao'' while paying higher [[interest rate]]s.<ref name="AcademiaPiaohaoMorckYang"/> The main income of the ''piaohao'', namely interest‐free deposits to the government of the Qing dynasty and intergovernmental transfers between different departments and provinces, disappeared overnight as there was no longer a Chinese government.<ref name="AcademiaPiaohaoMorckYang"/> The only institutional change brought to the Chinese financial system by the late Qing dynasty, the standardisation of currency, had completely ended the domestic money exchange business in which the ''piaohao'' were operating. As more chaos affected China, the borrowers of the ''piaohao'' defaulted.<ref name="AcademiaPiaohaoMorckYang"/> As they lacked any collateral, this was because their reputation had always been enough to get a lain, and because the shareholders were completely unprotected due to their unlimited liability,<ref name="AcademiaPiaohaoMorckYang"/> the capital shareholders and the managers of the ''piaohao'', due to the indemnification clauses which were present in their employment contracts, had to face the full losses causing many fortunes to be lost in the chaos.<ref name="AcademiaPiaohaoMorckYang"/> Following the takeover of [[Mainland China]] by the [[Communist Party of China|Communist Party]] during the [[Chinese civil war]] and the establishment of the [[People's Republic of China]] in 1952, the Communists started introducing many [[Soviet Union|Soviet-style]] reforms,<ref name="YunLiuHankouQianzhuang">{{cite web|url= https://www.researchgate.net/publication/328319998_A_City_of_Commerce_and_its_Native_Banks_Hankou_Qianzhuang_1800s-1952|title= A City of Commerce and its Native Banks: Hankou Qianzhuang (1800s-1952).|date=August 2013|accessdate=17 August 2019|author= Yum Liu|publisher= [[ResearchGate]]|language=en}}</ref> but while many of the reforms affecting the ''[[ancien régime]]'' banks, including the ''piaohao'', superficially resembled the reforms of the Soviet Union, the Chinese Communists would adopt a strategy which they dubbed "cultural positioning". This model would utilise traditional Chinese cultural influences in the process of implementing [[Communism in China|radical Socialist changes]]. During this transitional period the ''piaohao'' of China would maintain their strong traditional identity, but as ''piaohao'' were severely influenced by the political changes that affected them, many ''piaohao'' adopted a strategy of political compliance for their continued existence.<ref name="YunLiuHankouQianzhuang"/> The Communist Party saw the ''piaohao'' in a very antagonistic light, this was for a myriad of reasons strongly related to their Confucian nature. The leaders of the Communist Party of China viewed the ''qianzhuang'' as being a part of the hated [[bourgeoisie]] and claimed that private banks were anti-progressive, [[Nationalism|nationalistic]], reactionary against the Socialist revolution, and that they were very politically unreliable. The Communist Party hoped to transform the financial sector of China to serve the [[proletariat]] instead of the bourgeoisie.<ref name="YunLiuHankouQianzhuang"/> In reality, the political ambiguity of the private Chinese financial sector were likely an obstacle in the eyes of those who wished to transform the [[Economy of China|Mainland Chinese economy]] into a state-controlled [[planned economy]]. But during the initial phase of the People's Republic of China the continued existence of the independent private banks was tolerated.<ref name="YunLiuHankouQianzhuang"/> During the year 1950 the private banks of [[Hankou]] steadily experienced a recovery, the recovery of the private financial sector was crucial for the economy of Hankou following the devastating hyperinflation that affected Mainland China during the aftermath of World War II and the [[Republic of China retreat to Taiwan|retreat of the Nationalist Chinese government to Taiwan]]. The financial authority of Wuhan introduced more regulations and policies affecting the local private banks including the only ''piaohao'' in the city.<ref name="YunLiuHankouQianzhuang"/> The new [[Wuhan]] financial authority placed all banks, including ''qianzhuang'', ''piaohao'' (Shanxi banks), and commercial banks, into a single category. The local government of Wuhan attempted to negotiate mandatory deposit reserve ratios for banks, valorise credit markets, and release tighter remittance restrictions on all banks to stimulate the ravaged economy.<ref name="YunLiuHankouQianzhuang"/> By the end of the year 1950 the Wuhan financial authority would place all ''qianzhuang'' and the sole remaining ''piaohao'' of Wuhan, most of which were located in former Hankou, into 3 bank unions, the banks were allowed to negotiate which union they would join.<ref name="YunLiuHankouQianzhuang"/> 7 ''qianzhuang'' would form the first banking union, 5 Zhe-Bang ''qianzhuang'' and 1 ''piaohao'' formed the second banking union, and 5 ''qianzhuang'' formed the third banking union.<ref name="YunLiuHankouQianzhuang"/> == Banknotes issued by ''piaohao'' == {{See also|Paper money of the Qing dynasty|Zhuangpiao}} [[File:光緒信函憑單（機票匯票）- Guangxu 16 (1890).jpg|thumb|right|A banknote issued by a ''piaohao'' in the year Guangxu 16 (1890).]] During the late [[Ming dynasty]] period, Chinese people already widely used letters of exchange or money orders known as ''huipiao'' (匯票 or 會票) as a means of remittance (匯兌, ''huìduì'' or 撥兌, ''bōduì'').<ref name="ChinaKnowledgePiaohao"/> By the 19th century [[paper money]] had been long abandoned in China and various types of [[commodity currency|commodity currencies]] such as silver [[sycee]]s denominated in taels had become the standard currency for large transactions.<ref name="AcademiaPiaohaoMorckYang"/> The tael had regionally varying weights dependent on which city it was being traded in, for example the Guangzhou tael was 37.5 grams of silver, the Shanghai tael was 33.9 grams of silver, and the Customs tael was 37.8 grams of silver.<ref name="AcademiaPiaohaoMorckYang"/> The conversion rates between common tael types were well‐known among Chinese traders and merchants, and local units would take precedent unless a particular weight or purity was specified.<ref name="AcademiaPiaohaoMorckYang"/> The [[Spanish dollar]] (or "piece of eight"), which was a common currency in coastal China, contained 25.56 grams of pure silver, this made 1 Chinese tael roughly 1.5 Spanish dollars.<ref name="AcademiaPiaohaoMorckYang"/> The monthly interest rates was usually 2-3 ''[[Cash (unit)|li]]'' for deposits and 6-7 ''li'' for loans. Monthly interest rates were calculated based on [[Per mille|permillage]] (‰) while annual interest were based on [[percentage]]s (%).<ref name="AcademiaPiaohaoMorckYang"/> There exists the possibility that the papers issued by the ''piaohao'' were discounted when traded, but there is no evidence to support this hypothesis.<ref name="AcademiaPiaohaoMorckYang"/> Some ''piaohao'' issued their own paper bills, which were known as ''duitie'' (兌帖), ''qitie'' (期帖), ''qiantie'' (錢帖), and ''yinpiao'' (銀票), with different functions (many of these banknotes represented letters of exchange).<ref name="ChinaKnowledgePiaohao"/> These banknotes were seen as "making good for the missing of a kind of paper money or paper currency in the [[Qing dynasty coinage|monetary system of the (early) Qing dynasty period]]", as well as for the failed [[Da-Qing Baochao]] and [[Hubu Guanpiao]] banknotes issued during the reign of the [[Xianfeng Emperor]].<ref name="ChinaKnowledgePiaohao"/> The ''piaohao'' traded in currencies and conducted themselves in [[currency exchange]], at the time there were twenty different forms of bulk silver currency circulating in China at the time, each of these currencies had a different weight and percentage of silver purity.<ref name="AcademiaPiaohaoMorckYang"/> The ''piaohao'' issued two types of draft bills, one was for "ordinary customers" and the other for "longstanding customers", the bills issued for "ordinary customers" tells the branch office to use a specific type of unit without informing the customer, while the bills for the "longstanding customers" explicitly defines which unit is being used.<ref name="AcademiaPiaohaoMorckYang"/> == Differences between ''qianzhuang'' and ''piaohao'' == === Hankou === In an attempt to see why the ''qianzhuang'' succeeded in Hankou while the ''piaohao'' (or "Shanxi banks") failed [[Yun Liu (Historian)|Yun Liu]] attempted to compare them and tried to see why one type of bank slowly disappeared while the other would continue to thrive in the same city, by comparing information available on both of them from the archives of Hankou.<ref name="YunLiuHankouQianzhuang"/> Both the ''qianzhuang'' and the ''piaohao'' expanded their businesses at the same time. During their history, neither the Hankou ''qianzhuang'' nor the Hankou ''piaohao'' chose to [[Westernisation|Westernise]] their business models and practices, and despite being managed very similarly to each other, the Hankou ''piaohao'' would struggle following the fall of the Qing dynasty, while the Hankou ''qianzhuang'' would continue to strive.<ref name="YunLiuHankouQianzhuang"/> When modern banks started entering the Hankou scene both the Hankou ''qianzhuang'' and the Hankou ''piaohao'' would maintain their small business and staff sizes.<ref name="YunLiuHankouQianzhuang"/> According to Yun Liu some modern scholars claim that the reason that the ''piaohao'' disappeared is because they resisted adopting modern corporate structures and that they remained deliberately ignorant of how modern financial businesses operated. This narrative was stated by the manager of a Hankou ''piaohao'' who, in a report to his ''piaohao's'' head office in [[Pingyao]], [[Shanxi]], where he insisted on the incorporation of a new bank to be better equipped to compete. His plans included an elaborate scheme of staff duties, how the ownership should work, and its corporate bylaws. But this proposal was disregarded by the higher ups.<ref name="YunLiuHankouQianzhuang"/> Both the Hankou ''qianzhuang'' and the Hankou ''piaohao'' would continue to claim infinite liability, without actualising an incorporated form, in reality this caused their business traditions to hold a resisting effect to any adoption of fiscal reforms.<ref name="YunLiuHankouQianzhuang"/> Yun Liu also argues that it would be futile to argue that either the ''qianzhuang'' or the ''piaohao'' system would be more Confucian-featured, thus would either be more privileged or deprived in business because of this style assumingly. Following the Wuchang Uprising which occurred in the city of [[Wuchang]], right next to Hankou, the number of Hankou ''piaohao'' decreased in a very short amount of time, during the Qing dynasty in the year 1881 the city of Hankou counted a total of 33 ''piaohao'', while only 31 years later immediately following the proclamation of the Republic of China in 1912 the number of ''piaohao'' only counted 5. However, in the year 1923 the number of Hankou ''piaohao'' would increase to 9. In 1931 the number of Hankou ''qianzhuang'' was at 150 compared to only 7 Hankou ''piaohao''.<ref name="YunLiuHankouQianzhuang"/> Only two years later, in 1933, the number of active Hankou ''piaohao'' had been reduced to 2, by 1949 when the [[People's Republic of China]] under the [[Communist Party of China]] was established only a single ''piaohao'' remained in all of Hankou.<ref name="YunLiuHankouQianzhuang"/> In his paper, Yun Liu concluded that the reason why Hankou ''piaohao'' were more prone to (permanent) closure was because they were more vulnerable to any changes in the political landscape due to their higher levels of exposure to political risks. While for politicians the ''qianzhuang'' would often serve as their liaisons to the "locals", this might explain the failure of the Hankou ''piaohao'' being plausibly caused by its credit risk hidden in its uncollateralized loans, or a combination of various accidents over the years.<ref name="YunLiuHankouQianzhuang"/> == Jade parachutes and pensions == The ''piaohao'' had created a rather complicated system for pensions and welfare to help incentivise people to work harder for the shareholders.<ref name="AcademiaPiaohaoMorckYang"/> This pension scheme consisted of three separate funds was either referred to as a ''gong ji jin'' (literally "Pension account") or a ''[[Caishen]] Zhang'' (literally "God of Wealth account").<ref name="AcademiaPiaohaoMorckYang"/> The first fund was a type of bad state‐of‐the‐world insurance.<ref name="AcademiaPiaohaoMorckYang"/> The capital shareholders and expertise shareholders would negotiate a fraction of earnings that would have to be retained to be placed into this fund. The money saved into this fund was used for the scenario when an "[[act of God]]" harmed the bank's earnings during this fiscal year.<ref name="AcademiaPiaohaoMorckYang"/> The second fund was used to pay interest to the capital shareholders of the ''piaohao'', and this fund also contained their deposits, this was because capital shareholders were free to reinvest any fraction of their dividends into the company if they so wished.<ref name="AcademiaPiaohaoMorckYang"/> Drawing this fund down would require the approval of the capital shareholders. This fund provided a capital base for financing the development of the ''piaohao'' as well as its expansion.<ref name="AcademiaPiaohaoMorckYang"/> The third of these funds was used to pay divided to both dead and retired shareholders as well their heirs, these payments always had fixed terms and were paid until the shares expired.<ref name="AcademiaPiaohaoMorckYang"/> For example a General Manager who formerly had a single expertise share would receive one "dead share" with an expiration date after 8 years and a lesser insider with only 1 expertise share would receive a "dead share" which expired only after 7 years.<ref name="AcademiaPiaohaoMorckYang"/> Insiders with fractional expertise shares were granted identical fractions of a "dead share", but these "dead shares" would expire sooner for smaller fractions. For example "dead shares" arising an eighth or a ninth of an expertise share were typically terminated after only 6 years, while those from 0.6 or 0.7 of an expertise share terminate after 5 years, and so on getting shorter for smaller fractions.<ref name="AcademiaPiaohaoMorckYang"/> This system gave retiring managers of a ''piaohao'' or one of its branch offices strong incentives to look to the long‐run profitability of the ''piaohao'' in general, and to choose and train those who would succeed them very well, for their incomes in retirement as well as the prosperity of their heirs would be dependent on the performance both the ''piaohao'' of their successors.<ref name="AcademiaPiaohaoMorckYang"/> According to some reports, the first general manager of the Rishengchang had nominated a candidate other than his own son as the next general manager, as this system disincentived [[nepotism]] in favour of a [[meritocracy]].<ref name="AcademiaPiaohaoMorckYang"/> == References == {{Reflist}} == Sources == * Hong Pu (洪璞) (1998). "Shanxi piaohao (山西票號)", in Tang Jiahong (唐嘉弘), ed. ''Zhongguo gudai dianzhang zhidu da cidian'' (中國古代典章制度大辭典) ([[Zhengzhou]]: Zhongzhou guji chubanshe), 668. (in [[Mandarin Chinese]]). * Huang Da (黃達), Liu Hongru (劉鴻儒), Zhang Xiao (張肖), ed. (1990). ''Zhongguo jinrong baike quanshu'' (中國金融百科全書) ([[Beijing]]: Jingji guanli chubanshe), Vol. 1, 227. (in [[Mandarin Chinese]]). * Mo Zongtong (莫宗通) (1997). "Piaohao (票號)", in Men Kui (門巋), Zhang Yanjin (張燕瑾), ed. ''Zhonghua guocui da cidian'' (中華國粹大辭典) ([[British Hong Kong|Xianggang]]: Guoji wenhua chuban gongsi), 102. (in [[Mandarin Chinese]]). * Tang Chuansi (唐傳泗) (1992). "Piaohao (票號)", in ''Zhongguo da baike quanshu'' (中國大百科全書), ''Zhongguo lishi'' (中國歷史) ([[Beijing]] / [[Shanghai]]: Zhongguo da baike quanshu chubanshe), Vol. 2, 751. (in [[Mandarin Chinese]]). * Yao Enquan (姚恩權) (1993). "Piaohao (票號)", in Shi Quanchang (石泉長), ed. ''Zhonghua baike yaolan'' (中華百科要覽) ([[Shenyang]]: Liaoning renmin chubanshe), 85. (in [[Mandarin Chinese]]). * Zhang Guohui (張國輝) (1988). "Piaohao (票號)", ''Zhongguo da baike quanshu'' (中國大百科全書), Jingjixue (經濟學) ([[Beijing]] / [[Shanghai]]: Zhongguo da baike quanshu chubanshe), Vol. 2, 712. (in [[Mandarin Chinese]]). * Zhaojin Ji (2003). ''A History of Modern Shanghai Banking: The Rise and Decline of China's Finance Capitalism'' ([[Armonk]] / [[London]]: Sharpe). {{Commonscat|Shanxi banks}} {{Banks of the Qing dynasty}} {{Shanxi topics}} [[:Category:Defunct banks of China]] [[:Category:Economic history of China]] [[:Category:Banking in China]] [[:Category:Banks disestablished in 1952]] .

Standard reference templates

December 2019.

• <ref name="">{{cite web|url= |title= .|date=|accessdate= November 2019|author= |publisher= |language=en}}</ref>

• <ref name="ChinaKnowledge">{{cite web|url= http://www.chinaknowledge.de/History/Terms/qianzhuang.html|title= .|date=|accessdate=December 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>

• <ref name="ChinaKnowledgePiaohao">{{cite web|url= http://chinaknowledge.de/History/Terms/piaohao.html|title= ''piaohao'' 票號, the Shanxi Banks.|date=24 June 2016|accessdate=2 December 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>
  • <ref name="ChinaKnowledgePiaohao"/>

• <ref name="ChinaKnowledgeOfficeSelling">{{cite web|url= http://www.chinaknowledge.de/History/Terms/juanna.html|title= ''juanna'' 捐納, ''juanshu'' 捐輸, contributions.|date=25 July 2017|accessdate=2 December 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>
  • <ref name="ChinaKnowledgeOfficeSelling"/>

November 2019.

• <ref name="">{{cite web|url= |title= .|date=|accessdate= November 2019|author= |publisher= |language=en}}</ref>

• <ref name="ChinaKnowledge">{{cite web|url= http://www.chinaknowledge.de/History/Terms/qianzhuang.html|title= .|date=|accessdate=November 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>

• <ref name="ChinaKnowledgePiaohao">{{cite web|url= http://chinaknowledge.de/History/Terms/piaohao.html|title= ''piaohao'' 票號, the Shanxi Banks.|date=24 June 2016|accessdate=2 November 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>
  • <ref name="ChinaKnowledgePiaohao"/>

• <ref name="ChinaKnowledgeOfficeSelling">{{cite web|url= http://www.chinaknowledge.de/History/Terms/juanna.html|title= ''juanna'' 捐納, ''juanshu'' 捐輸, contributions.|date=25 July 2017|accessdate=2 November 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>
  • <ref name="ChinaKnowledgeOfficeSelling"/>

October 2019.

• <ref name="">{{cite web|url= |title= .|date=|accessdate= October 2019|author= |publisher= |language=en}}</ref>

• <ref name="ChinaKnowledge">{{cite web|url= http://www.chinaknowledge.de/History/Terms/qianzhuang.html|title= .|date=|accessdate=October 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>

• <ref name="ChinaKnowledgePiaohao">{{cite web|url= http://chinaknowledge.de/History/Terms/piaohao.html|title= ''piaohao'' 票號, the Shanxi Banks.|date=24 June 2016|accessdate=2 October 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>
  • <ref name="ChinaKnowledgePiaohao"/>

• <ref name="ChinaKnowledgeOfficeSelling">{{cite web|url= http://www.chinaknowledge.de/History/Terms/juanna.html|title= ''juanna'' 捐納, ''juanshu'' 捐輸, contributions.|date=25 July 2017|accessdate=2 October 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>
  • <ref name="ChinaKnowledgeOfficeSelling"/>

September 2019.

• <ref name="">{{cite web|url= |title= .|date=|accessdate= September 2019|author= |publisher= |language=en}}</ref>

• <ref name="ChinaKnowledge">{{cite web|url= http://www.chinaknowledge.de/History/Terms/qianzhuang.html|title= .|date=|accessdate=September 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>

• <ref name="GlobalTimesShanghaiMoneyShops">{{cite web|url= http://www.globaltimes.cn/content/778840.shtml|title= The rise and fall of money shops.|date=2013-5-2 17:33:00|accessdate=10 September 2019|author= Zhang Yu|publisher= [[Global Times]]|language=en}}</ref>

• <ref name="GlobalTimesShanghaiMoneyShops">{{cite web|url= http://www.globaltimes.cn/content/778840.shtml|title= The rise and fall of money shops.|date=2 May 2013|accessdate=10 September 2019|author= Zhang Yu|publisher= [[Global Times]]|language=en}}</ref>

• <ref name="DukeEastAsiaNexusChinese1935CurrencyReform">{{cite web|url= http://www.dukenex.us/noah-elbot-chinas-1935-currency-reform.html|title= China's 1935 Currency Reform: A Nascent Success Cut Short By Noah Elbot.|date=2019|accessdate=15 September 2019|author= Noah Elbot|publisher= Duke East Asia Nexus ([[Duke University]]).|language=en}}</ref>

• <ref>[[Korea Minting and Security Printing Corporation]] - [http://www.koreamint.com/goods/detail.do?gno=10070&cate=1857 Samhantongbo Dangbaekjeon Gold medal] - Retrieved: 29 September 2019. (in [[Korean language|Korean]]).</ref>

• <ref name="NIKHCurrency">{{cite web|url= http://contents.history.go.kr/front/eng/tz/view.do?levelId=tz_b25|title= Korean Currency.|date=2019|accessdate=29 September 2019|author= Not listed|publisher= [[National Institute of Korean History]]|language=en}}</ref>
  • <ref name="NIKHCurrency"/>

• <ref name="PrimaltrekKoreanTomb">{{cite web|url= http://primaltrek.com/blog/2016/01/23/xin-dynasty-coins-found-in-korean-tomb/|title=Xin Dynasty Coins Found in Korean Tomb.|date=23 January 2016|accessdate=5 September 2017|work= Gary Ashkenazy / גארי אשכנזי (Primaltrek – a journey through Chinese culture)|language=en}}</ref>

• <ref name="BusanDdadangJoseonEconomy">{{cite web|url= http://www.busanddadang.com/joseons-economic-system/?ckattempt=1|title=Joseon’s Economic System - “We have a system that increasingly taxes work and subsidizes non work.” – Milton Friedman (1912-2006), an American economist.|date=8 March 2016|accessdate=30 September 2019|author= [http://www.busanddadang.com/author/incauto/ Jung Inman]|publisher= Busan ddadang (the happy life of Busan).|language=en}}</ref>

• <ref name="SogouBaikeGeonwonJungbo">{{cite web|url= https://baike.sogou.com/m/v44424178.htm|title= 乾元重宝背东国.|date=2019|accessdate=30 September 2019|author= Sogou Baike (搜狗百科)|publisher= [[Sogou]] (搜狗公司)|language=zh-cn}}</ref>
  • <ref name="SogouBaikeGeonwonJungbo"/>

• <ref name="KoreaNetHwacheon">{{cite web|url= http://www.korea.net/NewsFocus/Culture/view?articleId=132070|title= 2,000-year-old Chinese coins unearthed in Gwangju.|date=21 January 2016|accessdate=30 September 2019|author= Lee Hana|publisher= [[Korea.net]]|language=en}}</ref>

August 2019.

• <ref name="">{{cite web|url= |title= .|date=|accessdate= August 2019|author= |publisher= |language=en}}</ref>

• <ref name="ChinaKnowledge">{{cite web|url= http://www.chinaknowledge.de/History/Terms/qianzhuang.html|title= .|date=|accessdate=August 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>

• <ref name="ChinaKnowledgeQianzhuang">{{cite web|url= http://www.chinaknowledge.de/History/Terms/qianzhuang.html|title= ''qianzhuang'' 錢莊, private banks.|date=24 November 2015|accessdate=9 August 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>

• <ref name="YunLiuHankouQianzhuang">{{cite web|url= https://www.researchgate.net/publication/328319998_A_City_of_Commerce_and_its_Native_Banks_Hankou_Qianzhuang_1800s-1952|title= A City of Commerce and its Native Banks: Hankou Qianzhuang (1800s-1952).|date=August 2013|accessdate=17 August 2019|author= Yum Liu|publisher= [[ResearchGate]]|language=en}}</ref>

July 2019.

• <ref name="">{{cite web|url= |title= .|date=|accessdate= July 2019|author= |publisher= |language=en}}</ref>

• <ref name="ChinaKnowledge">{{cite web|url= |title= .|date=|accessdate=July 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>

June 2019.

• <ref name="">{{cite web|url= |title= .|date=|accessdate= June 2019|author= |publisher= |language=en}}</ref>

• <ref name="ChinaKnowledge">{{cite web|url= |title= .|date=|accessdate=June 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>

May 2019.

• <ref name="">{{cite web|url= |title= .|date=|accessdate= May 2019|author= |publisher= |language=en}}</ref>

• <ref name="ChinaKnowledge">{{cite web|url= |title= .|date=|accessdate=May 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>

April 2019.

• <ref name="">{{cite web|url= |title= .|date=|accessdate= April 2019|author= |publisher= |language=en}}</ref>

• <ref name="ChinaKnowledge">{{cite web|url= |title= .|date=|accessdate=April 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>

March 2019.

• <ref name="">{{cite web|url= |title= .|date=|accessdate= March 2019|author= |publisher= |language=en}}</ref>

• <ref name="ChinaKnowledge">{{cite web|url= |title= .|date=|accessdate=March 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>

June 2017.

• <ref name="primaltrek">{{cite web|url= http://primaltrek.com/koreancoins.html|title=Korean Coins – 韓國錢幣 - History of Korean Coinage|date=16 November 2016|accessdate=5 June 2017|work= Gary Ashkenazy / גארי אשכנזי (Primaltrek – a journey through Chinese culture)|language=en}}</ref>
  • <ref name="primaltrek"/>

To use

• <ref name="ChinaKnowledgePaperMoney">{{cite web|url= http://chinaknowledge.de/History/Terms/papermoney.html|title= Paper Money in Premodern China.|date=10 May 2016|accessdate=27 March 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]]|language=en}}</ref>
  • <ref name="ChinaKnowledgePaperMoney"/>

• <ref name="QingPaperMoney">{{cite web|url= http://www.chinaknowledge.de/History/Terms/money-qing-baochao.html|title= Qing Period Paper Money.|date=13 April 2016|accessdate=27 March 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>
  • <ref name="QingPaperMoney"/>

• <ref name="SandrockForeignBanknotes1">{{cite web|url= http://thecurrencycollector.com/pdfs/Foreign_Banks_in_China_Part-I.pdf|title= THE FOREIGN BANKS IN CHINA, PART I - EARLY IMPERIAL ISSUES (1850-1900) by John E. Sandrock - The Opening of China to the Outside World.|date=1997|accessdate=1 April 2019|author= John E. Sandrock|publisher= The Currency Collector.|language=en}}</ref>
  • <ref name="SandrockForeignBanknotes1"/>

• <ref name="SandrockForeignBanknotes2">{{cite web|url= http://thecurrencycollector.com/pdfs/Foreign_Banks_in_China_Part-II.pdf|title=FOREIGN BANKS IN CHINA, Part II - IMPERIAL CHINESE ISSUES (1900-1911) by John E. Sandrock.|date=1997|accessdate=10 April 2019|author= John E. Sandrock|publisher= The Currency Collector.|language=en}}</ref>
  • <ref name="SandrockForeignBanknotes2"/>

• <ref name="SandrockCopperCashNotes">{{cite web|url= http://thecurrencycollector.com/pdfs/Ching_Dynasty_Copper_Cash_Notes_-_Part_II.pdf|title=IMPERIAL CHINESE CURRENCY OF THE TAI'PING REBELLION - Part II - CH'ING DYNASTY COPPER CASH NOTES by John E. Sandrock.|date=1997|accessdate=20 April 2019|author= John E. Sandrock|publisher= The Currency Collector.|language=en}}</ref>
  • <ref name="SandrockCopperCashNotes"/>

• <ref name="SandrockSilverTaelNotes">{{cite web|url= http://thecurrencycollector.com/pdfs/Ching_Dynasty_Silver_Tael_Notes_-_Part_III.pdf|title=IMPERIAL CHINESE CURRENCY OF THE TAI'PING REBELLION - PART III - CH'ING DYNASTY SILVER TAEL NOTES by John E. Sandrock.|date=1997|accessdate=29 June 2019|author= John E. Sandrock|publisher= The Currency Collector.|language=en}}</ref>
  • <ref name="SandrockSilverTaelNotes"/>

• <ref name="CambridgeInflation">{{cite web|url= https://www.cambridge.org/core/journals/bulletin-of-the-school-of-oriental-and-african-studies/article/hsienfeng-inflation/54A8F1ADDC871CC18F4DCFA828730DEB|title= The Hsien-Fêng Inflation (Published online by Cambridge University Press: 24 December 2009).|date=October 1958|accessdate=28 July 2019|author= Jerome Ch'ên|publisher= [[SOAS University of London]]|language=en}}</ref>
  • <ref name="CambridgeInflation"/>

• <ref name="Brill2015">[https://www.academia.edu/28400259/_Silver_Copper_Rice_and_Debt_Monetary_Policy_and_Office_Selling_in_China_during_the_Taiping_Rebellion_in_Money_in_Asia_1200_1900_Small_Currencies_in_Social_and_Political_Contexts_ed._by_Jane_Kate_Leonard_and_Ulrich_Theobald_Leiden_Brill_2015_343-395 “Silver, Copper, Rice, and Debt: Monetary Policy and Office Selling in China during the Taiping Rebellion,” in Money in Asia (1200–1900): Small Currencies in Social and Political Contexts, ed.] by Jane Kate Leonard and Ulrich Theobald, [[Leiden]]: Brill, 2015, 343-395.</ref>
  • <ref name="Brill2015"/>

• <ref name="HoreshQing">{{cite web|url= https://link.springer.com/referenceworkentry/10.1007%2F978-981-10-0622-7_54-1|title= The Monetary System of China under the Qing Dynasty.|date=28 September 2018|accessdate=29 July 2019|author= [[Niv Horesh]]|publisher= [[Springer Nature|Springer Link]]|language=en}}</ref>
  • <ref name="HoreshQing"/>

• <ref name="ChinaKnowledgeQianzhuang">{{cite web|url= http://www.chinaknowledge.de/History/Terms/qianzhuang.html|title= ''qianzhuang'' 錢莊, private banks.|date=24 November 2015|accessdate=9 August 2019|author= Ulrich Theobald|publisher= [[Chinaknowledge]].de|language=en}}</ref>
  • <ref name="ChinaKnowledgeQianzhuang"/>

• <ref name="WangYanfenRiskControl">{{cite web|url= http://www.cscanada.net/index.php/ibm/article/view/10849|title= The Risk Control of Qianzhuang.|date=26 December 2018 |accessdate=16 September 2019|author= Wang Yanfen, Doctoral student. School of Economics, Central University of Finance and Economics, [[Beijing]], [[China]]. (Received 16 September 2018; accepted 22 November 2018) - [http://www.cscanada.net/index.php/ibm/article/view/10849/pdf .pdf]|publisher= Canadian Academy of Oriental and Occidental Culture and Canadian Research and Development Centre of Sciences and Cultures|language=en}}</ref>
  • <ref name="WangYanfenRiskControl"/>

• <ref name="FEEHyperinflationOrigins1988">{{cite web|url= https://fee.org/articles/origins-of-the-chinese-hyperinflation/|title= Origins of the Chinese Hyperinflation.|date=1 September 1988|accessdate=19 September 2019|author= Mr. Habegger is a student at the University of Colorado in Boulder. He was a summer intern at FEE in 1986.|publisher= [[Foundation for Economic Education]] (FEE)|language=en}}</ref>
  • * <ref name="FEEHyperinflationOrigins1988"/>

More sources to use

• https://www.academia.edu/11901191/The_Shanxi_Banks
  • <ref name="AcademiaPiaohaoMorckYang">{{cite web|url= https://www.academia.edu/11901191/The_Shanxi_Banks|title= The Shanxi Banks.|date=12 April 2010|accessdate=31 October 2019|author= Randall Morck ([[University of Alberta]] - Department of Finance and Statistical Analysis; National Bureau of Economic Research (NBER); European Corporate Governence Institute; Asian Bureau of Finance and Economic Research) & Fan Yang ([[University of Saskatchewan]])|publisher= [[Academia.edu]]|language=en}}</ref>
    • <ref name="AcademiaPiaohaoMorckYang"/>
      • •  Done. --Donald Trung (talk) 13:20, 1 December 2019 (UTC) .

• http://etheses.lse.ac.uk/3415/
  • <ref name="WuMengShanxiPiaohao">{{cite web|url= http://etheses.lse.ac.uk/3415/|title= Traditions and innovations: An exploration of the governance structure, business strategy and historical development of the Chinese Shanxi piaohao, 1820s to 1930s. PhD thesis.|date=2016|accessdate=23 October 2019|author= Wu, Meng|publisher= The [[London School of Economics and Political Science]] (LSE).|language=en}}</ref>
    • <ref name="WuMengShanxiPiaohao"/>
      •  Done. --Donald Trung (talk) 18:44, 28 October 2019 (UTC) .

• https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1586691
  • <ref name="SSRNPiaohaoMorckYang">{{cite web|url= https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1586691|title= The Shanxi Banks (NBER Working Paper No. w15884).|date=12 April 2010|accessdate=29 October 2019|author= Randall Morck ([[University of Alberta]] - Department of Finance and Statistical Analysis; National Bureau of Economic Research (NBER); European Corporate Governence Institute; Asian Bureau of Finance and Economic Research) & Fan Yang ([[University of Saskatchewan]])|publisher= [[Social Science Research Network]] ([[Elsevier]]). |language=en}}</ref>
    • <ref name="SSRNPiaohaoMorckYang"/>
      •  Done. --Donald Trung (talk) 20:54, 30 October 2019 (UTC) .

PDF version of "The Shanxi Banks"

• https://www.nber.org/papers/w15884.pdf
  •  Done. --Donald Trung (talk) 13:20, 1 December 2019 (UTC) .

Spin-off expansions

• User:Donald Trung/Rishengchang Bank (日升昌票莊).
  •  Done. --Donald Trung (talk) 11:50, 1 December 2019 (UTC) .
• User:Donald Trung/Shanxi merchants (晋商).
  •  Done. --Donald Trung (talk) 14:09, 1 December 2019 (UTC) .

Redirects

• #REDIRECT [[Piaohao]]

1. Shanxi bank.
2. Shanxi banks.
3. Shanxi Bank.
4. Shanxi Banks.
5. Piao Hao.
6. Piao hao.
7. 票号.
8. 票號.
9. Piaozhuang.
10. 票莊.
11. Huihao.
12. 匯號.
13. Huiduizhuang.
14. 匯兌莊.
15. 山西票號.