Han And Sheng Xuanhuai Yeping Company

Late Qing Dynasty, Zhang Zhidong spent a large number of money in constructing Hanyang Steel Factory, but it didn't product any qualified steel, which was criticized by people. Sino-Japanese War later, Sheng Xuanhuai who is the chairman of China Railway Corporation started to managed Hanyang Steel Factory with the opportunity of extensive railway construction in China, and formulated a management policy that"If you succeed in railway and factory, you must control railway construction and rail production", it helped Hanyang Steel Factory to profit with rail advance price which was used in minimizing cost and maximizing profit. From 1896 to 1916, Sheng Xuanhuai failed to implement the management policy by political instability, policy swings and internal struggle. From 1896 to 1904, Hanyang Steel Factory based oneself on rail advance price from Luhan railway. From 1905 to 1916, Sheng Xuanhuai established Hanyeping Coal and Steel Corporation with allying Hanyang Steel Factory, Daye Iron Mine and Pingxiang Coal Mine, and he supplied quality Martin rail to railway with the cost of corporation property mortgage and high interest debt from Japanese. In the final, Hanyeping Coal and Steel Corporation was the risk taker from political instability, policy swings and internal struggle and reduced in control by Japanese.