5 - Global Markets, International Finance and the 1911 Revolution in China

Summary

Chapter 5 looks at the 1911 revolution in China, which brought an end to China’s Qing dynasty, and explores the role foreign financial markets and bankers played during the revolution and its aftermath. The chapter first explores the impact the outbreak of revolution in October 1911 had on China bonds traded on foreign bond markets. It then discusses how foreign bankers in different ways attempted to maintain China’s credit abroad. Turning back to China, it then traces how both the Qing dynasty and the revolutionaries tried to obtain foreign financial assistance. Finally, the chapter shows how, after maintaining China’s credit on foreign bond markets, they financially supported the newly inaugurated Chinese republic and eventually floated the large Reorganisation Loan in 1913 to keep the new government afloat.