They essentially controlled the lifeline of Hong Kong.
The historical Chaoshan business circle was a general term for the merchants in today's Chaozhou, Shantou, and Jieyang areas. These areas shared similar customs and language environments, and they held a significant position in modern Chinese history.
The Chaoshan business circle used the mainland as a channel, not only trading among coastal provinces in China but also sailing to Southeast Asian countries, acquiring profits through maritime trade. Later, it gradually expanded to become one of the main merchant groups in China during the Ming and Qing Dynasties.
A Strong Business Group
The Chaoshan business circle engaged in a lot of trade, which were all very common things. But in its development process, I feel there is one event that deserves attention: around 1850 before and after the Opium War, large amounts of opium entered China, harming the Chinese people. It was at that time that the Chaoshan business circle not only helped the Qing Dynasty suppress the Taiping Army but also assisted in suppressing other so-called rebellions and so-called peasant uprisings.
Thus, the Chaoshan group obtained an unprecedented privilege, akin to the former Anhui merchants' salt monopoly. What did they obtain? The privilege of selling opium, known as the opium monopoly privilege.
By 1906, during the late Qing Dynasty under Emperor Guangxu, the Qing government banned the sale of opium. So, please consider this: when the Chaoshan group was selling opium, it became one of the most important merchant groups in the country, accumulating vast amounts of money. But suddenly, if you were no longer allowed to sell opium, can you imagine the consequences?
Would it be like the merchants from Huzhou who collapsed due to the sudden failure of silk? Would it be like the Anhui merchants who dealt in salt, where problems with salt caused the entire Huizhou group to collapse? Would the Chaoshan group collapse entirely due to the Qing government banning the sale of opium in 1906?
No!
Because they are a so-called strong and adaptable merchant group. They knew how to enrich themselves through marriage relations, but they would not stagnate because of this. They seized opportunities and performed exceptionally well, almost unimaginably. After the prohibition of opium in 1906, a large amount of opium capital entered modern industries and modern banking.
Diversified Operations
After losing the opium monopoly rights, in 1916, Chaoshan merchants Zheng Peizhi and Guo Zibin jointly established the Hongyu Textile Mill, starting spinning yarns. Two years later, they founded the Hongzhang Textile Dyeing Factory. In 1921, another local merchant, a former opium merchant, invested 1.2 million taels (equivalent to the cost of an ironclad warship) to establish the Weitong Textile Mill, achieving industrial transformation.
Comparing this situation reveals that merchants from Huzhou, Huizhou, or even Shanxi could not match them. Within such a short period, they transformed the primitive and backward capital accumulated from opium into modern industry. Truly, apart from Ningbo merchants, I see no other merchant group that could rival them.
This textile mill was like today's very popular IT and internet industries. Nowadays, we might find textile mills old-fashioned, but back then, it was quite trendy. Another prominent sector was the silver industry. Among all merchant groups, only the Shanxi merchants' draft banks and Ningbo merchants' silver houses were renowned. Surprisingly, when the opium capital encountered issues, it was precisely the time when Chaoshan merchants entered the silver industry.
Between 1912 and 1926, over a span of 14 years, the people of Chaoshan opened a total of 33 silver houses, which was absolutely unimaginable. The total capital of these 33 banks amounted to 2.07 million taels.
Besides, there were many others. For example, in 1920, Liu Jieshi founded Tong An Xiang, dealing in oils, chemical raw materials, cotton textiles, and yarns. Chemical raw materials were also a very hot industry at that time! In 1938, Chen Huirong established Wan Mei Hang, specializing in goods from the north and south, as well as medicinal herbs.
In summary, the diversification of operations within the entire Chaoshan merchant group was unimaginable, much like the Ningbo merchants. This is why, fundamentally, the Chaoshan and Ningbo merchants truly control the lifeline of Hong Kong, forming the two merchant groups that constitute the most important business structure in China.
However, neither the Huizhou nor the Shanxi merchants have done so. As for the Huzhou merchants, they are nowhere to be seen.