Shanghai has long been a key player in China’s rubber industry, and its history dates back to the early 20th century. The city’s deep-rooted connection to rubber manufacturing and trade has seen both significant highs and devastating crashes, notably the Shanghai Rubber Stock Market Crisis of 1910. Today, Shanghai is populated by innovation-first companies that meet domestic as well as foreign demand for rubber-based products.
In the early 1900s, the rise of the automobile industry in the USA and Europe spurred massive demand for rubber. The United States saw its rubber exports increase from $57 million in 1908 to $70 million in 1909, while Britain’s rubber exports rose from 840,000 pounds to 1.41 million pounds within the same period. This global demand fueled speculation in rubber stocks, including in Shanghai, where companies such as Langkate, Perak, Kalumpong, Senawang, and Tebong sought stock market investments. By 1909, soaring rubber prices led to an influx of stock investments, with banks providing generous securities loans. Foreign banks offered mortgage discounts of 50-80%, a move quickly replicated by Chinese native banks. However, in mid-1910, US policies aimed at curbing rubber consumption caused international rubber prices to plummet. By July, rubber prices had dropped to six shillings, sparking panic in the stock market. On July 21, 1910, three Chinese banks—Zhengyuan, Yaokang, and Qianyu—collapsed, leading to a domino effect of additional bank failures across the country.
In the following century, Shanghai has been able to move beyond the instability of the early 20th century, but its role in the rubber industry remains significant. Today, the city is a center for rubber trade, research, and manufacturing, with a focus on sustainability and innovation. Key trends shaping Shanghai’s rubber sector include sustainability and green initiatives, technology and innovation, integration into global supply chains, and regulatory compliance.