After the Opium War in 1840, the Qing government signed the "Treaty of Nanjing" that humiliated the country, and britain also achieved the purpose of opening the door of China, Guangzhou, Xiamen, Fuzhou, Ningbo, Shanghai and other coastal cities have opened ports for trade, as foreigners continue to pour into China to pan for gold to do business, a variety of financial services have also rapidly entered the Chinese market, and securities transactions have also begun to appear.
After these cities along the coast opened ports for trade, the Chinese people were also a few joys and a few sorrows, and the merchants who saw the opportunity to trade with foreigners also made a lot of money, of course, more people carried heavier debts after opening ports and trade, many peasants left the land and gathered at the docks to carry out porting to make a living, and gradually formed a lot of dock gangs, and the foreigners played more despicable, in addition to purchasing all kinds of silk and pottery products at low prices from domestic merchants, they also dumped opium into the country, infiltrated and built their sales networks inland to harm the Chinese people.
Foreigners also play some cargo rights and equity transactions, such as sending a shipment of cargo from Guangzhou to the United Kingdom, the road storm is full of uncertainty, many British businessmen will transfer the right to income to some others with high risk appetite; there are also some British Guys who see that some people have made a lot of money in China, they raise funds to engage ships to hire people to pull goods in China, and everyone will finally distribute profits according to the equity, and this equity has the need for mutual transactions.
In the 19th century, the global capital market securities trading was all over-the-counter trading, peer-to-peer mutual quotations, there was no centralized market to quote, everyone was privately trading in a small circle, just started trading because everyone in the circle knew, the price speculation was limited, mainly to facilitate the financing of funds. However, soon a group of domestic businessmen with vested interests and compradors who laid hands on foreigners also smelled the sweetness and joined in, and then the circle of securities trading slowly expanded.
The third time securities trading out of the circle, after the Beginning of the Qing Government's Foreign Affairs Movement, almost in 1860, after the establishment of some Chinese enterprises, they also had the demand for financial integration, and also joined in, I also have equity to buy you, at this time the increasing supply of securities in the market Has a stronger demand for funds, and there is a stronger demand to attract more people to participate in the circle.
Soon, this point in time came.
After 1870, Shanghai, as an important treaty port in the Far East, attracted a large number of foreign merchants to compete with local merchants in the Yangtze River Delta, and a large number of comprador companies, foreign banks, and local banks were established to provide various financial services for bilateral trade, of course, securities transactions were also speculated in this environment. You think that from the opening of the port in 1840 to 1870, the entire infrastructure of trade has been established very perfectly, a number of vested interests have been gathered in the upstream and downstream of the industrial chain at home and abroad, and people from all walks of life outside have also seen the huge interests in trade, and everyone wants a piece of the pie.
In 1872, the official people of the Qing government came, Li Hongzhang, Sheng Xuanhuai opened a steamship in Shanghai, the Merchants Bureau also issued shares, shanghai citizens have tried to do some ways to participate, when the stock was issued, it was simply ten miles empty, and everyone dragged all kinds of relations in order to get a stock. As a result, the market did not live up to expectations, the stock price quickly soared from 100 to 274 two, which is equivalent to buying the original shares has doubled, the huge wealth-making effect has allowed the industry around the world to see the opportunity to get rich for a time, so the local mining bureaus have set up companies in Shanghai to raise funds, such as Hefeng Copper Mine, Chengde Sanshan Silver Mine, Shunde Copper Mine and other mining companies quickly raised funds in Shanghai, and immediately became a popular stock in the market at that time. Later, it even developed to the point that Li Wenyao, the founder of the Sanshan Silver Mine, originally went to Shanghai to look for a candidate for mining affairs, but he did not expect that as soon as he arrived in Shanghai, the shareholders flocked to it, and Li Wenyao, who originally did not have a IPO financing, had to "reluctantly follow the crowd" and temporarily collected 200,000 taels of founding silver, which was so exaggerated.
Behind this matter is indispensable to the shanghai comprador bank and money bank boost, just at the beginning of the stock trading is everyone to take their own money to buy, but the money-making effect is too good, many people moved to kill the heart, began to find compradors and banks to borrow money and leverage to buy, compradors, money banks and banks just started to earn money for lending, and then a look, no, this lending can make a few money, so they themselves also went to buy. Later, it also developed that many people borrowed money from the bank to buy, and after buying, pledged to the bank and then borrowed money to buy again, and suddenly a large amount of leveraged hot money poured into the entire Shanghai securities market. Like the famous Hu Xueyan's Fukang Qianzhuang, the main participant in the stock market at that time, they took a large amount of depositors' cash into the stock market to speculate.
We know that at this time, the tragedy is about to happen, the stock price should be the early violent speculation has been pulled up to the sky-high price, the hot money in the market also has a limit can not carry the stock price to continue to rise, and the market like the China Merchants Bureau like the establishment of the official supervision of the business establishment fundraising, but also from the market to take away a lot of liquidity, in the role of these factors, the stock market disaster inevitably occurred.
In October 1883, the huge speculative funds flowing out of the money bank, the ticket number, and the bank evaporated overnight, and some money houses and ticket numbers that undertook to pledge stocks or directly participated in stock speculation collapsed, and Hu Xueyan also went bankrupt and has since collapsed. Not only investment institutions, but also companies that issue shares have been dragged down by the stock market crash. For example, when Xuzhou Liguoyi Coal and Iron Mine was listed, due to the excessive number of shares, far exceeding the prospectus, it was decided to collect as it was used, so as not to idle funds and bear dividends. Less than half of the share capital was collected in preparation for mining. Later, when the coal mine needed working capital, it encountered a stock market crash, and the stock money could no longer be collected, and the coal mine suddenly fell into a situation of exhaustion. Another example is the Shanghai machine weaving layout. Although the weaving layout collected all the share capital, but 1/3 of it was lent to the shareholders, and after the stock market crash, the shareholders were unable to repay the loan, the operation of the enterprise came to a standstill, and Jing Yuanshan, as one of the founders of the weaving layout, also withdrew from the industry.
After this storm, Shanghai's economy was seriously affected, everyone talked about the discoloration of stocks, and at that time, the "Declaration" also commented on the cause of the stock market crash: Those who buy stocks today do not care whether the company's performance is good or bad, and it does not matter whether the company's business can make money, as long as the stock is newly listed, they will immediately raise money to buy.
The late Qing Dynasty's stock market crash storm, from the British violence to open our country's door, growth and late Qing Dynasty foreign affairs movement to promote the outbreak, and finally withered and all the participants greedy desire, the long river of history has passed 150 years, looking back at the 2015 stock market crash, how many shadows do we see in that year?