"The Financial Unrest Caused By The Excess Of Trust Companies And Stock Exchanges" And The Changes Of The Securities Market In Morden Shanghai

The securities market is referring to the market in which the various negotiable securities including government bonds, shares, enterprise securities be issued and circulated.In the circulation market, the stock exchange is a highly organized and standardized place that transfer and sale the securities.The securities market in morden Shanghai began in the government-supervised and merchant-run enterprises,it once appeared prosperous .Such prosperity built on the over-speculation and the Qing government had no corresponding management measures , then these caused the outbreak of the financial panic in 1883, in a few years the stock market had been low. In the beginning of the Republic China securities markets become active again, the trade of the stocks increased day by day. Beiyang government promulgated the "Law on the Stock Exchange" in 1914 .After repeated applications, the Shanghai Stock and Goods Exchange formally opened in 1921. The Shanghai Chinese Stock Exchange had been established on the restructuring of the Association of Stock Business. Subsequently, gauze, gold, machine-made breadflour, grains and cake had established their exchanges. The stock prices of these exchanges rose qiuckly after opening ,they profit times excavated. Some people thougt that the exchanges were the shortcut to get rich, which triggered a speculative craze to the exchanges and trust companies. Ultimately the financial unrest broke out.Beiyang government had banned some illegal exchanges and trust companies under the press, negotiated with the foreign authorities request prohibit strictly the establishment of the exchanges and trust companies and strengthened the management to the securities market. After the financial unrest,the securities trade suffered a disastrous decline.The stock had no prestige any more and the trade was extremely few; the government bonds had been the main object of the securities trade after a period of time.The securities market had affiliated to the government's "financial market", weakening its functions.