Background
Xueyan Hu was born in 1823 in Jixi, Anhui, China.
Photograph of Hu Xueyan
Hu's former residence is now a tourist attraction in Hangzhou. It was opened to the public in 2001 after restoration.
胡雪岩
Xueyan Hu was born in 1823 in Jixi, Anhui, China.
In 1837, the 14-year-old Xueyan Hu moved to Hangzhou to be apprenticed to a private bank which would later become the foundation of his Fukang Bank. Through a series of events, at 26 years of age, he became friends with a local salt magnate, Wang Youling. He borrowed 500 taels of silver in bank drafts to help Wang run for office. This would cement Wang as Hu's political ally, a relationship that Hu would lean on during his rise to wealth.
Twelve years later, in 1860, Wang became the governor of Zhejiang. In gratitude for Hu's help early on his campaign, Wang campaigned hard to help Xueyan Hu start more private banks. The following year, the Taiping Rebellion reached Hangzhou. Xueyan Hu used his considerable influence to transport food and arms to the city. However, by the end of the year, Hangzhou fell due to the lack of food. Wang committed suicide, leaving Xueyan Hu without an ally.
At the age of 39, Xueyan Hu eventually found an ally in General Tso, the new viceroy and Governor-General of Fujian and Zhejiang. He won Tso's trust by paying for Tso's army's rations and salaries. He later became General Tso's financier in all his military efforts.
In 1866, Xueyan Hu funded Foochow Arsenal, China's first modern shipyard and naval academy. After General Tso accepted a position as Governor-General of Shaanxi and Gansu, he ran the naval academy in Tso's stead. To aid in the movement of Tso's troops and its military expedition against the Muslim rebels in Xinjiang and later the Russians (known as the Ili Crisis), Xueyan Hu, then being in charge of the Shanghai Transportation and Procurement Bureau, raised up to 15,950,000 taels of silver (600,000 kg) in debt from HSBC - HSBC's first public loan in China. As a result, Tso was victorious, and Xueyan Hu was awarded the red-topped hat by the Imperial Court for his efforts.
Along the way, Xueyan Hu set up various other businesses, ranging from banks to pawnshops. After being recognised by the Qing government for his achievements, he also began to engage in more philanthropic activities. His best known contribution that still stands to this day is the medicinal hall Hu Qing Yu Tang.
Later in life, Xueyan Hu tried to corner the silk trade, leading to a boycott led by the French. In 1883, after being forced to sell silk, he began to experience cash flow problems. There were runs on his bank, and he finally filed for bankruptcy in 1884. Within a year, Xueyan Hu died of depression at age 62.
Xueyan Hu is most notable for being the only person of the merchant class in the Qing dynasty to be awarded a red-topped hat, a rank indicating an officer of second grade by the Qing imperial court. He was also one of the few people who was given express permission by Empress Dowager Cixi to ride a horse in the Forbidden City, which at the time was a superior privilege.
