Posted 2017/11/16
Huizhou's geographic location was significant to the economy of southeastern China as a communication hub between the south and the north. As a result of Huizhou's particular geographical condition and the need of economic development, landowners began to take up business.
In the Southern Song Dynasty (1127-1279), as the capital was moved from Kaifeng to Lin'an (now Hangahou), the political and economic center shifted to the south as well. This stimulated the economy of neighboring areas to develop, and introduced the Central Plains culture to the South.
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When the Imperial Court of the Southern Song moved its capital from the north to the eastern city of Hangzhou in 1132, Huizhou merchants were on hand to supply bamboo, wood, lacquer, and craftsmen for the construction of palaces, pavilions, villas, and temples.
This construction boom provided Huizhou traders with capital to branch out into new industries and provinces. It transpired that with the strengthening of the southern economy, Huizhou's location between Zhejiang and Jiangsu provinces could be made to turn a profit. Soon Huizhou became a key communications and trade route, and local traders diversified into selling tea, grain, silk, cloth, paint, pottery, ink, and paper.
However, it was when Huizhou's merchants turned to the high margin salt and pawnbroking businesses that they were able to accelerate their expansion. They thus spread to all corners of China and even expanded into some Southeast Asian countries. Indeed, it was said that by the reign of Emperor Guangxi (1875-1909) all pawnbrokers in China were from Huizhou.
