Rishengchang Former Bank (China Bank Note Museum)

The Rishengchang Former Bank (日升昌旧址), established in the third year of Daoguang’s reign in the Qing Dynasty (1823), is a historical site located in Pingyao, Shanxi Province. It covers an area of 1,402 square meters and is divided into three courtyards: the Eastern, Western, and Central Courtyards. The Eastern Courtyard houses the “Meiheju” eatery, the Western Courtyard was once the Rishengchang branch, and the Central Courtyard comprises five rooms for various business and living purposes. The front courtyard served as the main business hall, the middle courtyard was used for office functions, and the rear courtyard was designated as the living quarters.

Rishengchang was China’s first private bank, originally a pigment shop named “Xiyucheng” founded by Li Daquan and managed by Lei Liutai. In the fourth year of Daoguang’s reign, they invested 300,000 taels of silver to transform the business into a financial institution specializing in deposits, loans, and remittances. Renowned for its motto “汇通天下” (Connecting the World), Rishengchang became a prominent financial institution. At its peak, it had branches in over 30 cities across China and extended its reach to Europe, America, and Southeast Asia. However, the bank went bankrupt in September 1914.

Today, the Rishengchang Former Bank has been transformed into the China Banknote Museum (中国票号博物馆), featuring 17 exhibition rooms:

1. Exhibition Rooms 1-4: Display the bank’s operations related to deposits, loans, and storage of current silver.
2. Exhibition Room 5: Highlights the use of correspondence for managing over 30 branches and showcases the management skills and leadership of the bank’s executives.
3. Exhibition Room 6: Features original documents and materials that depict the busy state of the bank’s remittance business.
4. Exhibition Room 7: Demonstrates the bank’s commitment to customer service and its extensive business outreach.
5. Exhibition Rooms 8-9: Present historical materials related to Pingyao and Shanxi banking guilds.
6. Exhibition Room 10: Introduces Lei Liutai’s background and his strategic and leadership capabilities.
7. Exhibition Room 11: Details the achievements of Mao Hongxiang and Cheng Dapei, who co-founded the bank with Lei Liutai.
8. Exhibition Rooms 12-13: Recreate the historical living conditions of the bank’s time.
9. Exhibition Room 14: Provides a scientific summary of the century-long evolution of Chinese banks.
10. Exhibition Rooms 15-17: Introduce other national banks, including those in Taigu and Qixian.

Basic Information

Location and Transportation

The Rishengchang Former Bank is located at No. 38 West Street, Pingyao County, Jinzhong City, Shanxi Province. To reach it, take the Pingyao Bus Route 108 North Line and get off at Beimenkou Station; the former bank is within walking distance from there.

History of Rishengchang Private Bank

Early Development and Formation

During the Qing Dynasty, particularly in the periods of the Kangxi, Yongzheng, Qianlong, and Jiaqing emperors, financial institutions such as pawnshops, banks, and money shops began to emerge and establish themselves in Pingyao. By the 18th year of Jiaqing (1813), the city had over 700 commercial firms, with 25 specializing in finance. This commercial and financial advantage set the stage for the establishment of a prominent private bank in Pingyao.

In the early Jiaqing period, a pigment shop named “Xiyucheng” was based in Pingyao’s West Street. The financial backers were the Li family from Xidapu Village. The shop, which had operated for many years, had established branches in major cities such as Beijing, Tianjin, Hankou, and Chengdu. Lei Liutai, who had managed branches in Hankou and Beijing, was instrumental in evolving a comprehensive remittance model by adapting ancient practices and overcoming limitations of traditional currency lending practices.

Upon his return to Pingyao, Lei suggested transforming the pigment shop into a specialized financial institution. With the approval of the Li family, they invested 300,000 taels of silver to establish Rishengchang in the third year of Daoguang’s reign (1823). Rishengchang was the first of its kind in China, focusing exclusively on deposit, loan, and remittance services. Its name, meaning “The Sun Rising,” reflected its aspirations for prosperity. Lei Liutai was appointed as the General Manager.

Expansion and Influence

Following its establishment, Rishengchang solved the issues of large-scale silver transactions before the advent of national banks. It quickly expanded, establishing branches in over 40 major cities across China. By the sixth year of Daoguang (1826), Rishengchang’s success drew the attention of other financiers. Hou Peiyu, a major financier from nearby Jiexi County, recognized the potential of Rishengchang and recruited key figures like Mao Hongxiang, who had been involved in managing multiple financial businesses.

In the 18th year of Daoguang (1838), the Rishengchang bank and other prominent banks such as the “Wei” family banks formed a competitive network, leading to the establishment of the Rixinzhong Bank as a counterbalance. This period marked the emergence of the Shanxi banking guild, known as the Pingyao school, which represented the initial phase of development for Pingyao banks.

Challenges and Adaptations

The 20th year of Daoguang (1840) marked the beginning of a tumultuous period with the First Opium War and subsequent conflicts, including the Taiping Rebellion and the Second Opium War. These wars created instability, and southern branches of Pingyao banks faced challenges such as robberies and security threats. In response, banks had to retract branches and reduce their scale to mitigate risks while still striving to overcome the difficulties.

During the Xianfeng years (1853-1860), new banks such as the Xiehexin and Xietongqing were established, further expanding the network of Pingyao banks. By the end of the Xianfeng period, the Pingyao banking sector had grown to 11 institutions.

Peak and Political Integration

The period from the 11th year of Xianfeng (1861) to the 16th year of Guangxu (1890) saw a significant expansion in Pingyao’s banking industry. Notable additions included Qianjisheng and Yunfengtai, among others. By 1880, Pingyao banks had branches in 68 cities and commercial centers, including 14 in Shanghai and 32 in Hankou. The Pingyao network was becoming a major financial force.

During this time, Pingyao banks started taking on significant roles in handling government finances and loans, especially after the First Sino-Japanese War in 1894, which resulted in China paying large indemnities to Japan. The banks played a crucial role in managing these financial obligations, consolidating their influence and extending their reach even further.

Decline and Transformation

The turn of the 20th century brought new challenges. The Boxer Rebellion in 1900 saw the Qing Dynasty in crisis, with foreign troops invading China. Pingyao banks, including Rishengchang, took on additional responsibilities, handling significant expenses for the imperial court and military. The banks gained high social and political status but faced severe risks and losses.

Post-rebellion, the banks were praised and encouraged to resume their operations in Beijing, leading to a temporary resurgence. However, as modern banking practices began to emerge and foreign banks entered the market, Pingyao banks faced intense competition. The establishment of national banks and provincial treasury offices further eroded their market share.

The decline became more pronounced during the early Republican era. The 1911 Revolution and the subsequent turmoil severely impacted the Pingyao banks. In 1914, the Rishengchang bank faced a severe crisis when its Beijing branch was implicated in financial mismanagement. Despite efforts to salvage the institution, it was forced into bankruptcy and restructuring.

Legacy and Closure

By the 1920s, many Pingyao banks, including Rishengchang, had closed or transformed their operations. Rishengchang attempted to continue under new management but eventually converted into a pawnshop in 1932. Thus, the pioneering Rishengchang Bank, which had once been a cornerstone of Chinese finance, concluded its century-long legacy.

The rise and fall of Rishengchang and the Pingyao banking guild reflect a period of remarkable financial innovation and adaptation. Their story highlights the dynamic nature of Chinese finance during a time of profound social and political change.