Abstract

The book researches into modern Japanese exchanges in China and retrospect their activities and influences dichotomously in line with their 39-years history. The relationship between Chinese and modern Japanese exchanges based in China are also analyzed，and causes of their unsuccessful operation are examined. Summarizing the experience and lessons in early international management，it is hoped that the analysis can provide useful insights for the institutionalization and internationalization of Chinese exchanges，promoting cooperation between Chinese and Japanese exchanges，in a bid to enhance win-win trading and economic ties，to boost mutual trust，and to preserve regional peace and stability.

In accordance with the above-mentioned purposes and methodology，the book is divided into five chapters.

Chapter I，consisting of four sections，recounts a brief history of exchanges in modern Japan. Section I describes the origin and spread of exchanges：first an overview of the origin and spread of exchanges in Europe，America，Africa，Oceania，and Asia；then the classification，features，and functions of exchanges，extending to the differences between membership and joint-stock exchanges and the merits and demerits of each，which are the focus of this section；and last the discrepancy of early exchange types between Europe，America，and Japan. Section II presents the history of the emergence，development and changes of Japanese exchanges in the post-Meiji restoration era. It divides the history of the Japanese exchange into four stages：the Shokusan Kōgyō，the Industrial Revolution，the Economic Recession and Rehabilitation，and the Wartime Economic Control Period before the end of WWII. It also looks back at Japanese exchange history，starting from its rise，to its development，adjustments，overseas expansion，and its fall. Section III points to the characteristics of Japanese exchange development：taking the rice exchange as the mainstay，being organized mainly by stocks and shares，the long-term existence of securities of goods，and being influenced by the Japanese government. It also sets forth the influence of these features on the establishment and operation of Japanese exchanges in China after the Russo-Japanese War. Section IV introduces the impacts of the rise of exchanges in modern Japan，especially the role taken by the exchanges in stabilizing rice price and society as a whole，maintaining labor-force reproduction，fostering convenient financing for enterprises，supporting industrial economic development，posing as a barometer for economic performance，sustaining and serving finance，and being an instrument for Japanese economic growth and its expansion.

Chapter II，comprised of four sections，is an exposition on the emergence，rise，and fall of modern Japanese exchanges in China. In addition to the background and causes of the establishment of Japanese exchanges in China. Section I states that setting up exchanges in China met with Japan’s demand for economic expansion to China in post-Russo-Japanese War. In the pre-war period，the government had been flirting with the idea of setting up such financial institutions as exchanges in China，and the post-war period further saw a practical need of establishing goods，stock，and voucher exchanges in China for the sake of trading with and investment in China. Section II is divided into three phases to introduce changes and causes that Japan set up state-owned and private exchanges in the northeast of China and inside Shanhai Pass. Section III boils down the features of the development of exchanges in modern Japan to six aspects：（1）the numerousness and concentrated distribution of Japanese exchanges；（2）most were comprehensive exchanges that also engaged in specialty business；（3）most were company-based；（4）most were state-owned，closed connected with the authorities；（5）supervision on Japanese exchanges in China by both Kanto Office and Ministry of Foreign Affairs；（6）it caused conflicts between state-owned exchanges and private exchanges abounds and their operation is unsteady. Section III also comments on the reasons and effects of the organizational，operational，and managerial features of Japanese exchanges in China.

Chapter III，having five sections，backtracks the commercial and other activities of modern Japanese exchanges in China. Section I takes as examples Dalian Specialty Exchange，Dalian Commodity Exchange Ltd.，and Qingdao Exchange，looks back on the commodity trading in modern Japanese exchanges in China. And describes the trade of agricultural specialties and other agricultural products and industrial products. Section II takes as examples Dalian Money and Metal Exchange and Qingdao Exchange，looks back on their money and metal trading and their purposes and harms. Taking as examples Harbin Exchange，Manchuria Exchange，Dalian Commodity Exchange Ltd.，Qingdao Exchange，and Shanghai Exchange. Section III looks back upon the securities trading of Japanese exchanges in China and their purposes，methods，and effects. Taking as examples Qingdao Exchange，Shanghai Exchange，and Hankou Exchange. Section IV offers an induction to other non-core commercial activity in modern Japanese exchanges in China including warehouse container operation，cargo insurance and deliveries，capital lease，investment and acquisition. Section V cities as examples Qingdao Exchange，Hankou Exchange，Shanghai Exchange，and Dalian Exchange，and recounts other illegal activity in modern Japanese exchanges in China，such as exchange manipulations，commercial bribery，discredit，competitor and drug trafficking，pointing to the fact that the exchanges，state-owned in particular，are not pure commercial organizations，but instead with political functions.

With four sections，Chapter IV re-combs and re-examines multiple relations between Chinese exchanges and modern Japanese exchanges based in China. Taking as examples Shanghai Exchange and Shanghai Securities and Commodity Exchange，Section I describes the relationship between Chinese and Japanese exchanges as demonstrating-learning or instructor-student. Section II takes as examples Shanghai Cotton Yarn Exchange and Shanghai Exchange，and looks back upon the relationship between the two countries’ exchanges such as same business communication，personnel participation，business collaboration，and acquisition. In the light of Qingdao Exchange and Qingdao Commodity and Securities Exchange，Section III demonstrates the competition and contradictions between them，while Section IV reveals their super-economic.

Chapter V，two sections in total，deals with historical evaluation of and enlightenment to the activities of Japanese exchanges in China. Section I is historical evaluation and retrospection. In terms of history，it indicates the activities of Modern Japanese Exchanges in China are double-edged：illegal activity tramples on China’s sovereignty and business rights，while it also stimulates the emergence and rise of Chinese exchanges. A bewildering co-existence of confrontation and cooperation between the Chinese and Japanese exchanges. The operation of exchanges in China，is a major step toward internationalization for the Japanese，yet not successful on the whole. Section II discusses several enlightenment from history：（1）China should adopt or reform the organization of domestic exchanges in line with local conditions and the times；（2）On the basis of corporatization and listing，China’s exchanges may consider same business communication and commercial mergers and acquisitions；（3）China may consider promoting the internationalization in the operation of exchanges under the One Belt One Road Initiative；（4）Cooperation in exchanges may be a breakthrough point in enhancing the economic ties，mutual trust，and political relations between the two countries.

Main points of the book are as follows. First，in terms of different countries，regions，and time，an exchange should adopt different organizations. Second，corporate exchanges are competitive，growing，and open in nature and thus more suited to the environment. Corporatization and listing represent our direction of organizational reforms. Third，an open and competitive market will stimulate joint ventures and acquisitions among exchanges at home and abroad，which is more likely to be fulfilled by profit-oriented and open corporate exchanges. Fourth，the rise of China’s economy will no doubt prompt the internationalization of domestic exchanges and facilitate cooperation between Chinese and foreign exchanges，which shall be built upon sound international relations，goodwill from the host country，mutual respect for sovereignty，business rights，and laws，and the principle of equality and mutual benefits. Fifth，as a business organization，the exchange should adhere to the principle that “business is business” and maintain the independence and autonomy of operation，staying away from politics，so as to avoid interference of international political disputes in international operation and business cooperation. Sixth，business communication and cooperation is beneficial to exchanges from both countries even in the historical moments when the extreme deterioration of economic relations was caused by serious political confrontations between the two countries. A conclusion can be drawn that in the future，exchange from both countries are bound to have space for and possibility of business communication and commercial cooperation. We shall take lessons from history while opening the door for future cooperation on the basis of equality and mutual benefits.