CAPITAL FREEDOM IN CHINA key reformer official in the Qing court. In October 1872, Li appropri ated 135,000 taels of Zhili military funds as a govemment loan to CMC. Despite the govermment's assurance that outside shareholders would receive a 10 percent government-guaranteed dividend yield private merchants pledged share capital of more than 100,000 taels but actually paid up only 10,000 in cash. Between 1873 and 1883, the got ernment provided annual loan amounts between 80,000 and 1,000,000 taels to CMC (Lai 1991). The total of these government loans was 2.2 times the maximum paid-up share capital during this period. Overall. the first decade after the ing of CMC bro 15 joint-stock companies to the market(see Figure I for the evolu- tion of new joint-stock companies), from mining, manufacturing, and transportation industries. Their shares were traded on the streets and the teahouses in Shanghai By the end of the Qing dynasty in 1911, China had had more than 40 years of experimentation with -stock corporations and a stock market. More than 480 stocks had been issued for public trading, with many more businesses indirectly benefiting from the stock market. These modern corporations represented a tion of industries from manufacturing, electrical power, mining, textile,railway, and steamship transportation to banking and FIGURE I NUMBER OF NEW CHINESE STOCKS ISSUED FROM 1873 TO THE PRESENT Restarting stock market in 1990 Founding of PRC put End of Qing Dynasty- 1911 ullII §罾翼舅虽虽墨§§ SOURCES: Goetzmann, Ukhov, and Zhu(2001)for the late Qing Zhu(2005)for the late 1940s; and CRSC website for post-1990593 Capital Freedom in China key reformer official in the Qing court. In October 1872, Li appropri￾ated 135,000 taels of Zhili military funds as a government loan to CMC. Despite the government’s assurance that outside shareholders would receive a 10 percent government-guaranteed dividend yield, private merchants pledged share capital of more than 100,000 taels but actually paid up only 10,000 in cash. Between 1873 and 1883, the gov￾ernment provided annual loan amounts between 80,000 and 1,000,000 taels to CMC (Lai 1991). The total of these government loans was 2.2 times the maximum paid-up share capital during this period. Overall, the first decade after the founding of CMC brought 15 joint-stock companies to the market (see Figure 1 for the evolu￾tion of new joint-stock companies), from mining, manufacturing, and transportation industries. Their shares were traded on the streets and in the teahouses in Shanghai. By the end of the Qing dynasty in 1911, China had had more than 40 years of experimentation with joint-stock corporations and a stock market. More than 480 stocks had been issued for public trading, with many more businesses indirectly benefiting from the stock market. These modern corporations represented a cross sec￾tion of industries from manufacturing, electrical power, mining, textile, railway, and steamship transportation to banking and 0 20 40 60 80 100 End of Qing Dynasty - 1911 Founding of PRC put an end to stock market Restarting stock market in 1990 120 140 160 180 200 220 1874 1879 1883 1886 1889 1892 1895 1898 1901 1943 1946 1992 1995 1998 2001 2004 FIGURE 1 Number of New Chinese Stocks Issued from 1873 to the Present Sources: Goetzmann, Ukhov, and Zhu (2001) for the late Qing; Zhu (2005) for the late 1940s; and CRSC website for post-1990. 44795_Ch19_Chen:19016_Cato 8/29/13 11:37 AM Page 593