Jiaozi Paper Money System

Timeline

1. c. 1000–1250Yizhou (Chengdu Prefecture) · Yizhou CircuitIn the early Northern Song, private jiaozi credit notes in Sichuan developed into state-monopoly paper money; after the Southern Song moved its capital, huizi, guanzi, and other notes were issued, backed by copper coin reserves and salt and tea monopoly revenues, forming one of the world's earliest national paper currency circulation systems.
2. 1251–1260Lin'an Prefecture · Lin'an PrefectureThe Mongol invasion drove military spending sharply upward; the Southern Song court issued more huizi to fund troops and relief, causing exchange ratios to fall and market prices to fluctuate more severely; the 1250s became a key turning point as the jiaozi system moved from maturity to credit overextension.
3. 1260–1287Dadu · YuanAfter Kublai Khan's accession, the Zhongtong note was issued, integrating the former Jin and Song paper money systems and Western Regions note experience, laying the foundation for the Yuan dynasty's nationwide paper-for-copper currency system; the jiaozi legacy was incorporated into the imperial fiscal framework.