Shanghai Private Financial Sector (1949-1952)

My thesis focuses on the private financial industry in Shanghai.It discusses their functions and evolvements from the liberation of Shanghai in 1949 to the end of 1952 in two sectors.The economic system and social environment for private financial industry changed dramatically during this period. Through regulations from the new government and market competition, their relations with the old state financial institutes were cut off, resumed its capital, changed its operation orientation and management which was from separated individual operation gradually towards collaborated loan, operation and management, from single-task cooperation to multi-task cooperation. Furthermore, led by the state policy, the state-private coalition on management grew gradually from individual bank to bank groups and to the whole financial industry eventually. The private financial industry was thus united on organization, operation, human resource and financing. The relationship between private financial industry and the state bank was readjusted and conformed. A relationship of administration and being administrated, domination and accessory was established. The financial market in Shanghai accomplished the transformation from disordered to ordered, from old financial system to a new one. Along with the stabilization of political situation, the resumption of economy and the flourish of social life, the large sum of working capital and business of private financial industry came from industry, commerce, agriculture, cooperating business, public utility, education, government, other organizations and the masses. Meanwhile, the financial industry also provided basic credit service such as deposit, loan, exchange, etc. to industrial and commercial business and other customers. This is the basic status and role of private financial industry in Shanghai at that time. The historical status and role were further represented by the readjustment of management of private financial industry and the evolvement of organization of the business. The private financial industry acted both passively and actively towards a series of policies of the new government and their implementation. The private financial industry showed their social responsibility and patriotism in purchasing government bonds,participating in movements as anti-America, support-Korea,etc. It passed the test of related political movements as a whole industry. The official arrangement of system for financial industry and official policies for private financial industry during the period promoted substantially the transformation of management orientation and the development of basic operation of the private financial industry.