Historical Sketch

In the 1840s, China got forced to open to foreign trade. In the following years, Hong Kong and Macau got carved as British and Portuguese colonies and returned to China only in the late 1990s. Other territories were occupied by Germany (Kiautschou), France (Kwangchowan), Japan (Kwantung) and Britain (Weihai Garrison). Extra-territorial international settlements were established in the cities of Shanghai and Tianjin.

Monetary History Overview

Beside Hong Kong and Macau, only the German protectorate of Kiautschou defined a distinct monetary order. Germany took possession of Kiautschou (surrounding region of the city of Qingdao in Shandong province) in 1897. Due to the prevalence of silver in the Chinese economy, the introduction of German accounting (in gold) was never envisaged. Beside the Chinese Tael the "Mexican Dollar" was used as unit of account, with values fluctuating against the German Reichsmark. The use of Chinese copper and silver subsidiary coinage was tolerated, but they were accepted with reduction in the market and by official agencies. In 1906, the German-Asian Bank, which had been founded in Shanghai some 25 years earlier, was granted the privilege to issue paper money. Two parallel series of banknotes were issued, one in Mexican Dollar and one in Chinese Tael. The paper Taels were pegged to the paper Dollar and thus fluctuated against silver bullion. In 1909, the colonial government issued two subsidiary coins with fixed value against the Mexican Dollar. In November 1914, Japan occupied Kiautschou. The notes of the German-Asian Bank remained current, as it was the case for other foreign banks in China, which all kept their privileges until the Chinese currency reform of 1935.

Currency Units Timeline

Currency Institutes Timeline

Monetary History Sources