China Banking System before 1911 - The Unique Business Managerial Model

The Silver Dynasty, with Aaron Kwok as the actor signals message to the world that China till the Revolution in 1911, had run a unique banking system. Controlled a group of businessman from Shanxi, it worked closely with the Ching Government. Silver is the denominated currency of exchange. They issued 'bank-draft' to any depositors and these 'bank-draft' can be cashed most of the major cities in China.

They provide critical lending and mis-matching of cash(in the form of silver) to the government. The centre government of China in Beijing then required their help and services to acknowledged funds transfer within and beyond the whole state of China. They provide critical 'trust receipt' for any of the import and export trade.

To a surprise, China, being the most populated nations then, practiced a banking system then closely tying the Shanxi clans. They imposed strict and critical rules on their employees. The employees were barred from ultra marital activities. By no means, they were banned from opium. Severe punishment and immediate sacking of the position made the employees to be very discipline.

In return, the employees were paid with 'handsome' return. They practiced 'profit sharing'. The shareholders of the 'banks' were not usually matter with the daily activities. A general manager would be employed to manage the whole operation activities. The branch managers managed and reported to the general manager. The banking operation is highly integrated and well connected with all branches within the banks and other banks.

Bankers then formed a bankers club to solve the related issues, problems and indifference amongst. They were very united and were working as 'governed body' that the Ching Governement had settled to work with them instead.

In my opinion, the movie inspires me of their outstanding managerial achievement during the good old days. It models the modus operanti of the critical activities of private business groups. It implies message Chinese businessmen will use the same model to adminster and control the whole world economy. Siting the openness of economic policy - that encourage their Government Link Companies (GLC) to explore overseas opportunities. They had acquired and continue to acquire much of the businesses globally.

In the nutshell, they are the bankers now.......and not the players.