Jincheng Bank Lending And Investment Research (1917-1937)

Kin Cheng Banking Corporation was a main pillar for the historically famous "Four Northern Banks" as well as one of the most important commercial banks in China before Liberation. From its establishment to the beginning of the War of Resistance Against Japan, Kincheng laid down its fast foundation and achieved rapid development. Kincheng's business of loan and investment developed rather rapid among its contemporaries. During Beiyang Warlord period, Kincheng struck up close contact with industry and commerce circles, especially in north China, by extending huge loans and initial investments. After the Nanjing Nationalist Government was founded, Kincheng increased its direct investments to related enterprises, esp. industrial enterprises, and thus consolidated and stabilized its cooperation with them. Kincheng's performance in making loans and recruiting bonds for railways has been outstanding among the Chinese modem banks. Later on, Kincheng acted as the representative for the loaning bank group and played an important role in extending loans. Kincheng was also one of those banks which dealt much with government loans and bonds. What's more, Kincheng held a leading place in extending loans to agriculture and small businesses. After the Nanjing Nationalist Government was founded, Kincheng gradually shifted its key business toward south China. While on the whole, Kincheng's business was still dominant in north. By means of its business, Kincheng held an important post and exerted far-reach influence in the financial circles in north China. With its loans and investments, Kincheng made its considerable contributions to agriculture, industry, commence as well as railway, roads and other public projects. The experience Kincheng accumulated through its management is still instructive and beneficial for today's financial reforms, bank constructions and economy developments. It shows that banks can hold an advantageous post and obtain continuous stimuli for developments only when they keep to the principles of serving the society, managing stably, reforming in line with the social needs and their own situations always associated self-development with the needs of economy and society.