THE modern banks in China evolved from the imperial societies' "qian zhuang" or "piao hao" (currency stores).

It wasn't until the end of China's feudal period - with the demise of the Qing Dynasty (1644-1912) - that the country had a body to handle currency exchange, the lending of loans and the sale of various kinds of products as well.

It was called "qian zhuang" in the South but "piao hao" in the North. Shanghai and Pingyao in North China's Shanxi Province had the most "qian zhuang" and "piao hao" in the early days of the 20th century.

They provided only a few of the services offered by modern banks, developed quickly in Shanghai where there was a great deal of maritime trade, especially after the city was "opened" as a treaty port in 1843. Beijing, the "financial centre" at that time, declined the service after the Eight countries Allied Forces invaded in 1900. Shanghai has since then taken over that position.

The first "qian zhuang" in Shanghai was opened by a resident from Shaoxing in neighbouring Zhejiang Province. He opened a store for selling charcoal, exchanging currencies and for giving loans later on.

Those small and private "qian zhuang" were finally washed out with the entrance of foreign banks with huge funds at the end of the Qing Dynasty.

(Star News)