Xietongqing Unincorporated Bank Museum in Pingyao, Jinzhong

Xietongqing Draft Bank (协同庆票号) was established in the sixth year of Emperor Xianfeng of the Qing Dynasty (1856) by the Wang family of Niedian Village, Yuci (榆次聂店王家), and the Mi family of Wangzhi Village, Pingyao (平遥王智村米氏). The head office was located on South Street of Pingyao (平遥南大街), with an initial capital of 36,000 taels of silver (only 1/5 to 1/8 of the capital of other large draft banks at the time). Its branch network eventually expanded to 33 commercial ports across China as well as to Japan and Russia.

The building complex featured five courtyards with a reception room, general accounting office, and an underground vault. The original site was restored in 2000 as a museum, housing 30 exhibition rooms. The first general manager was Chen Qian’an (陈谦安), succeeded by Meng Ziyuan (孟子元) and Liu Qinghe (刘庆和). Zao Houtian (赵厚田) was later heavily employed to expand business in Sichuan. In 1890, Zhao became the general manager, streamlining operations and foreseeing the risk of the First Sino-Japanese War.

According to merchant Li Hongling (李宏龄), Xietongqing’s core competitiveness lay in its unique talent management strategy — “winning by selecting the right people.” During the Xinhai Revolution, its branches were looted, leading to bankruptcy. The Mi family defaulted on debts, while the Wang family declined due to extravagance. Xietongqing ceased operations in 1913.

The bank also employed watermark anti-counterfeiting technology on its drafts. Surviving drafts preserved at the Shanxi Museum (山西博物院) serve as evidence of its rigorous financial practices.

• Chinese Name: 协同庆票号
• Location: Pingyao County (平遥县)
• Opening as Museum: 1979
• Famous Attraction: Pingyao (平遥)

Background

The establishment of Xietongqing was driven by two young talents, Liu Qinghe (刘庆和, styled Suzai) and Meng Ziyuan (孟子元). Liu, born into poverty, left school at 15 to work in business and once studied remittance at Yutaifu Draft Bank (蔚泰厚票号). The Taiping Rebellion disrupted Jiangnan, forcing many draft banks to close branches and lay off staff. Liu and his friend Meng left Yutaifu, determined to set up their own business.

Through an introduction, they met the wealthy Wang family of Niedian Village, Yuci. Wang Dong (王栋), head of the family, was eager to establish a draft bank but lacked suitable talent. Upon learning that Liu and Meng had worked at the renowned Yutaifu, he immediately hired them. Together with the Mi family of Wangzhi Village, Pingyao, the two families co-invested to create Xietongqing.

At first, the cautious elder Chen Qian’an was appointed manager, with Liu and Meng assisting. After Chen’s death, Meng became general manager due to his seniority. He was open-minded, valued talent, and entrusted key figures such as Chen Zibi, Lei Wenshan, Liang Tingshao, Wen Zhongxian, Zhang Xingzhai, Lei Runtang, and especially Zhao Houtian, whom he discovered and promoted. Zhao later spent over 20 years in Suzhou, Lanzhou, Chengdu, and Chongqing, significantly expanding business. Under Meng’s efforts, Xietongqing flourished.

After Meng’s early death, Liu Qinghe (styled Suzai) succeeded him. Liu was meticulous and skilled in management, continuing Meng’s strategies, with special success in Sichuan. Zhao Houtian became the pillar of operations there, earning strong trust. Although Liu at times resented Zhao’s independence, he still relied on him for the greater interest of Xietongqing.

Zhao Houtian as General Manager

In 1890 (16th year of Guangxu), Liu passed away. Although many candidates were available, the shareholders directly appointed Zhao Houtian as general manager, giving him full authority. By then, Xietongqing had been operating for over 30 years with 31 branches in Beijing, Tianjin, Zhangjiakou, Kaifeng, Xi’an, Shanghai, Hankou, Changsha, Fuzhou, Xiamen, and more.

With such a vast network, inefficiencies were inevitable. Zhao immediately dismissed redundant staff and promoted capable ones, practicing strict meritocracy. He often studied history and foresaw risks from rising Sino-Japanese tensions. Anticipating war, he withdrew capital from Fujian and Guangdong branches to avoid losses.

Unfortunately, Zhao fell ill and died in 1893, shortly before the outbreak of the First Sino-Japanese War. His foresight proved accurate. After his death, the Wang family withdrew capital, leaving the Mi family as sole investor. Without strong leadership, the bank declined rapidly due to over-expansion and poor management.

Decline After the Xinhai Revolution

During the 1911 Revolution, chaos spread. Xietongqing’s branch managers absconded with funds, while remaining assets were looted. Creditors rushed to the Pingyao headquarters to demand repayment. Mi Qishao (米七少), the Mi family heir, fled with his mother to Jiexiu, living with relatives. However, he squandered resources, became addicted to opium, and eventually sold off all family assets. Both he and his mother died in poverty.

The Wang family, having shifted to salt, tobacco, and grocery businesses after withdrawing capital, also declined as descendants fell into addiction. The last family head, Wang Qi, eventually died destitute on the streets.

Reflecting on Xietongqing’s rise and fall, Li Hongling remarked:
“Success and failure all depend on people. When talent thrives, the business prospers; when talent perishes, the business collapses. This is true everywhere.”