The Huaxing Commercial Bank or Huaxing Bank, sometimes transliterated Hua-Hsing (), was a

central bank A central bank, reserve bank, national bank, or monetary authority is an institution that manages the monetary policy of a country or monetary union. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the mo ...

of the Japan-supported

Reformed Government of the Republic of China The Reformed Government of the Republic of China (; Japanese: ) was a puppet state created by Japan that existed in eastern China from 1938 to 1940 during the Second Sino-Japanese War. The regime had little authority or popular support, nor did ...

that governed the

Jiangnan Jiangnan is a geographic area in China referring to lands immediately to the south of the lower reaches of the Yangtze River, including the southern part of its delta. The region encompasses the city of Shanghai, the southern part of Jiangsu ...

region of

China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...

during early years of the

Second Sino-Japanese War The Second Sino-Japanese War was fought between the Republic of China (1912–1949), Republic of China and the Empire of Japan between 1937 and 1945, following a period of war localized to Manchuria that started in 1931. It is considered part ...

. It started operations in

Shanghai Shanghai, Shanghainese: , Standard Chinese pronunciation: is a direct-administered municipality and the most populous urban area in China. The city is located on the Chinese shoreline on the southern estuary of the Yangtze River, with the ...

in May 1938, was reorganized as a mere commercial bank following the creation of the Central Reserve Bank in January 1941, and stopped operating in August 1945. It was thus one of the "puppet" banks of issue established by the Japanese occupation forces, together with the Central Bank of Manchou (1932-1945),

Mengjiang Bank The Mengjiang Bank, also Meng Chiang Bank or Bank of Inner Mongolia (), was a central bank of the Japan-supported government of Mengjiang that governed Inner Mongolia during early years of the Second Sino-Japanese War, from late 1937 to early 1941 ...

(1937-1945), United Reserve Bank (1938-1945), and Central Reserve Bank (1941-1945).

Overview

Huaxing Commercial Bank was established on with initial capital of 50 million yuan. The Reformed Government subscribed for half, while the other half came from the

Industrial Bank of Japan Industrial Bank of Japan, Limited (IBJ), based in Tokyo, Japan, was one of the largest banks in the world during the latter half of the 20th century. It was established in 1902 as a policy institution or "special bank", similarly as Nippon Kan ...

Bank of Taiwan The Bank of Taiwan (BOT; ) is a commercial bank headquartered in Taipei, Taiwan. It was established in 1897-1899 as a Japanese policy institution or "special bank", similarly as the Nippon Kangyo Bank (est. 1897), Hokkaido Takushoku Bank (est. ...

Bank of Chōsen The Bank of Chōsen (, ''Joseon Eunhaeng''), known from 1909 to 1911 as the Bank of Korea ( ''Kankoku Ginkō'', ''Hanguk Eunhaeng'') and transcribed after 1945 as Bank of Joseon, was a colonial bank that served as bank of issue for Korea under J ...

Mitsubishi Bank The was a major Japanese bank headquartered in Tokyo, founded in 1880. For much of the 20th century it was one of the largest Japanese banks, together with Dai-Ichi Bank, Mitsui Bank, Sumitomo Bank, and Yasuda / Fuji Bank. It served as the ma ...

Sumitomo Bank was a major Japanese bank, founded 1895 in Osaka and a central component of the Sumitomo Group. For much of the 20th century it was one of the largest Japanese banks, together with Dai-Ichi Bank, Mitsubishi Bank, Mitsui Bank, and Yasuda / Fu ...

, and

Mitsui Bank was a major Japanese bank from 1876 to 1990. The home bank of the Mitsui conglomerate, it was one of the largest Japanese banks for much of the 20th century, together with Dai-Ichi Bank, Mitsubishi Bank, Sumitomo Bank, and Yasuda / Fuji Bank. I ...

Liang Hongzhi Liang Hongzhi; (; Wade-Giles: ''Liang Hung-chih''; Hepburn: ''Ryō Koushi'', 1882 - November 6, 1946) was a leading official in the Anhui clique of the Beiyang Government, later noted for his role as in the collaborationist Reformed Governmen ...

was appointed as the bank's President, and Washio Isoichi () as Vice President. It opened on in the

Hongkou Hongkou (; formerly spelled Hongkew) is a district of Shanghai, forming part of the northern urban core. It has a land area of and a population of 757,498 as of 2020. The district borders Yangpu to the east, Pudong to the southeast, Huangpu t ...

district of Shanghai. On , the bank established a branch in

Nanjing Nanjing or Nanking is the capital of Jiangsu, a province in East China. The city, which is located in the southwestern corner of the province, has 11 districts, an administrative area of , and a population of 9,423,400. Situated in the Yang ...

at No. 233 Zhuque Road, the former location of Shanghai Commercial and Savings Bank. As with other puppet banks, the bank's staff was mostly Chinese, but most executives, consultants, advisors, and foreign exchange managers were Japanese. The currency issued by the Huaxing Bank, known as Huaxing yuan or ''Huaxing-quan'', was forced to circulate in the areas under the jurisdiction of the Reformed Government. It was issued in the form of

banknote A banknote or bank notealso called a bill (North American English) or simply a noteis a type of paper money that is made and distributed ("issued") by a bank of issue, payable to the bearer on demand. Banknotes were originally issued by commerc ...

s and

coin A coin is a small object, usually round and flat, used primarily as a medium of exchange or legal tender. They are standardized in weight, and produced in large quantities at a mint in order to facilitate trade. They are most often issued by ...

s. On , the Huaxing yuan was pegged to the

pound sterling Sterling (symbol: £; currency code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound is the main unit of sterling, and the word '' pound'' is also used to refer to the British currency general ...

at the rate of 6 pence to 1 yuan. In January 1941, with the creation of the Central Reserve Bank, the monetary role of the Huaxing Bank was terminated. Its currency was exchanged for that issued by the new institution, at a rate of 100 Huaxing yuans to 240 Central Reserve yuans. The bank's president Liang Hongzhi was arrested in

Suzhou Suzhou is a major prefecture-level city in southern Jiangsu province, China. As part of the Yangtze Delta megalopolis, it is a major economic center and focal point of trade and commerce. Founded in 514 BC, Suzhou rapidly grew in size by the ...

on , transferred to Shanghai and charged for treason, sentenced to death on and executed on , aged 65.

References

Former central banks Defunct banks of China Banks established in 1938 {{Asia-bank-stub

Overview

See also

References