Visiting the "Founding Pioneer of Modern Chinese Banking": A Small Courtyard Preserving a Century of Dedication

China News Service Jinzhong, March 19 — Title: Visiting the “Father of Modern Chinese Banking”: A Small Courtyard Preserving a Century of Dedication

Authors: Hu Jian, Wang Ruiqin, Han Xiaomeng

In early spring, in Pingyao, Jinzhong, Shanxi, sunlight filters through the ancient city’s eaves and shines on an old courtyard on West Street. Above the door, the large, weathered characters “Rishengchang Ji” are faded and heavy.

Entering, the sound of abacus beads seems to still be in the ears. This is the former site of Rishengchang Piaohao, known as the “Father of Modern Chinese Banking.” In the early Daoguang period of the Qing Dynasty, China’s first private financial institution specializing in remittances was established here, beginning a legendary financial story of “connecting the world through finance.”

Staff at Rishengchang in Pingyao are handwriting exchange drafts. Photo by Han Xiaomeng

Inside the exhibition hall, a yellowed replica of an exchange draft draws visitors to stop. Guide Li Chaoxi shows the reporter the secrets behind it: “When held up to the light, the paper’s corners have a watermark of ‘Rishengchang Ji’.” She explains that, besides the watermark, there are overprints, dedicated handwriting, micro-engraved seals, and a complex set of Chinese character codes.

“For example, the 12-month secret code is hidden within the 12 characters: ‘Jinfang fang jian bao jia piu mo qu, wu xie yi shou shu zhang’.” Li says. In an era when communication relied on pigeons and cash was transported by escorts, this rigorous anti-counterfeiting system was the “hard strength” that supported the Piaohao’s foundation.

Technology is the skeleton; integrity is the bloodline.

At Rishengchang, a story of “a single draft traveling the world” has been passed down through generations. The guide recounts: an elderly man held a worn-out draft that had been in circulation for over thirty years, well past its maturity date, yet he finally exchanged it for 12,000 taels of silver at Rishengchang. Over time, the Piaohao’s unwavering commitment to trustworthiness has never changed.

This integrity is not only for customers but also for the country. During the Guangxu era, Rishengchang’s financier Li Zhen listened to his mother’s will and donated silver for disaster relief and charity, embodying the merchant spirit of “serving the nation and benefiting the people” in Shanxi.

The brilliance of the Piaohao was rooted in forward-thinking business wisdom.

Rishengchang pioneered the “Eastern Partner System,” where “the owner invests but does not operate, the shopkeeper manages but does not invest,” with profits shared equally among silver shares and personal shares—this equity incentive model predates Western practices by centuries. Shopkeeper Lei Lütai used personal effort to top the shares, pioneering the professional manager system.

This system led to the emergence of 22 Piaohao in Pingyao, with Shanxi accounting for over 80% of the nation’s Piaohao. The Pingyao Plain thus became China’s financial center at that time.

Today, although the era of Piaohao has passed, its cultural vitality is thriving.

Li Chaoxi told the reporter: “Now, over a million visitors come here each year.” What excites her even more is that educational programs have been iterated multiple times. “Children learn to write letters, keep accounts, and open drafts here, experiencing the rigor and integrity of the past. This immersive learning helps the Piaohao culture truly ‘live’ in their hearts.”

From the pioneering financial innovation of “connecting the world through finance” to the cultural gene of “trustworthiness as the foundation”; from advanced business wisdom to exquisite anti-counterfeiting techniques—the Pingyao Piaohao Museum carries not only a magnificent commercial history but also the living inheritance of the Jin merchant spirit.

Walking out of the courtyard, the dusk of the ancient city deepens. The story of trust and innovation still echoes among the blue bricks and gray tiles of West Street. (End)