Xietongqing Ancient Bank Museum, Pingyao

Located in Pingyao, Shanxi Province, the Xietongqing Ancient Bank Museum (协同庆钱庄博物馆) provides a rich historical narrative of China’s banking evolution. Established in 1856 during the Qing Dynasty’s Xianfeng era, Xietongqing was a prominent example of a traditional “piaohao” (draft bank) – a type of financial institution pivotal in China’s monetary history.

Xietongqing was founded by prominent local merchants from the Niandian Wang family of Yuci and the Mi family of Wangzhicun in Pingyao. It became a crucial financial entity, central to the economic life of the region. The original premises of Xietongqing were restored and opened to the public as the Xietongqing Ancient Bank Museum in October 2000.

Table of Contents

• Basic Information
• Location and Transportation
• The Origin of Piaohao
• The Structure of Xietongqing
• Museum Exhibits and Historical Highlights

Basic Information

Location and Transportation

he Xietongqing Ancient Bank Museum is located at 45 Nan Street, Pingyao County, Jinzhong City, Shanxi Province. To get there, you can take the Pingyao Bus Line 108 North Route and get off at the Beimenkou stop (北门口站). From there, it’s a short walk to the museum.

The Origin of Piaohao

In ancient China, financial institutions evolved in response to the need to manage diverse forms of currency. During the Ming Dynasty, the primary forms of currency were silver and copper coins. Silver was used for large transactions and official payments, while copper coins were used for everyday transactions. This dual-currency system created a demand for organizations that could facilitate the exchange between these two types of money. This need led to the creation of money shops or piaohao, which specialized in currency exchange and financial transactions.

Pingyao, a historical town known for its well-preserved architecture and financial heritage, was one of the early centers for money shops. By the Qing Dynasty’s Qianlong era, Pingyao had already established a “Money Industry Association” that published exchange rates daily, reflecting the town’s significant role in China’s financial history.

The Structure of Xietongqing

The Xietongqing complex is divided into seven distinct areas, each serving a specific function:

1. First Courtyard: This area includes the cashier’s office, the general ledger room, and the inter-city ledger room. It served as the main operational hub for financial transactions and record-keeping.
2. Second Courtyard: This courtyard housed the business hall and the inter-city communication room, facilitating daily transactions and correspondence.
3. Third Courtyard: This area contained the managerial offices, the worship room, and the executive room. It was the administrative center where strategic decisions were made.
4. Fourth Courtyard: This area was dedicated to the living quarters for employees, reflecting the importance of housing and maintaining staff.
5. Fifth Courtyard: This was the location of the bank’s vault, where valuable assets and reserves were securely stored.
6. Sixth Courtyard: The security courtyard was responsible for the protection and safety of the premises and its assets.
7. Seventh Courtyard: This courtyard houses the Coin Museum, which showcases an extensive collection of historical currency and related artifacts.

Museum Exhibits and Historical Highlights

The Xietongqing Ancient Bank Museum features thirty exhibition rooms that vividly narrate the rise and fall of this influential financial institution. The museum employs modern techniques such as lighting and electronic displays to bring its history to life. Key historical highlights include:

1. Founding and Early Challenges: Xietongqing was established amidst significant national turmoil, including the Taiping Rebellion and the Second Opium War. The early years were marked by financial instability and a lack of resources.
2. Strategic Expansion: To overcome these challenges, Xietongqing recruited talented individuals like Zhao Depei. Zhao’s appointment marked a turning point, as he expanded the bank’s operations to Suzhou and later to Lanzhou in the northwest. This expansion was instrumental in establishing Xietongqing’s influence in these regions.
3. Disaster Relief: In 1877, during a severe drought in Shanxi, Xietongqing’s branches in Sichuan and other areas raised over 500,000 taels of silver for disaster relief. This act of philanthropy significantly enhanced the bank’s reputation.
4. Business Hub: The Chengdu and Chongqing branches became major business centers, while the bank’s influence extended across the northwest and southwest regions of China.
5. Management and Reforms: Under Zhao Depei’s leadership, the bank underwent significant reforms. He focused on improving management practices, promoting talented staff, and dismissing ineffective personnel, leading to a resurgence in the bank’s fortunes.
6. Imperial Support: During the imperial tours of the two empresses, Xietongqing provided substantial financial support for the imperial entourage and was handsomely rewarded.
7. Financial Crisis: Despite its successes, the bank faced a financial crisis under General Zhang Zhida. Mismanagement and liquidity problems led to severe challenges for Xietongqing, reflecting the volatile nature of financial institutions in historical China.