In the 1930s, the world economic crisis spread to China and the successive September 18th Incident, January 28th Incident, and silver craze caused industrial and commercial depression and financial turmoil. China's economy deteriorated extremely, and the real estate industry began to slump. Here Under this situation, many hidden dangers hidden in Siming Bank's past operations suddenly broke out, bringing it to the brink of collapse. Since Siming's funds were heavily invested in real estate and securities, funds gradually became stagnant and the turnover was poor. At this time, in order to expand its financial monopoly power, bureaucratic capital took Siming as a target for plunder. In June 1935, under the instruction of Finance Minister Kong Xiangxi, the Central Bank sent batches of people to run Siming banknotes, and Siming Bank was no longer from Ningbo. As a unique bank, it lost its early appeal among Ningbo people. In addition, Siming was not like the "Southern Third Bank" and "Northern Fourth Bank" and failed to establish good alliances with other financial institutions. Therefore, when the crisis came At that time, Siming was unable to support it and repeatedly requested the Ministry of Finance to maintain it. However, Kong Xiangxi insisted that Sun Hengfu withdraw from Siming. After Yu Qiaqing and others dealt with it, in June 1936, Sun resigned as general manager due to illness and was succeeded by Ye Zhuotang. transition. During this period, the National Government implemented a legal currency policy, revoked the issuance rights of commercial banks, and recovered issued banknotes within a time limit. Siming owed 13.09 million yuan in issuance reserves and had no way to raise funds. It had to use advances from the Central Bank as a banknote recovery fund. further controlled by bureaucratic capital. In May 1936, Siming Commercial Stock still wanted to make a last effort and decided to increase its capital by 4 million yuan. However, the shareholders were heavily in debt and had no spare capacity to increase capital and subscribe for shares.

In October of the same year, Chairman Sun Hengfu had to once again request the Ministry of Finance to send someone to "try to maintain order." Under Kong Xiangxi's instruction, Li Jialong, manager of the Nanjing Branch of the Central Bank, served as general manager of Siming. He quickly took charge of After an inventory of Siming's property, it was found that Siming had an actual loss of 24.69 million yuan and was insolvent. It was decided to stop issuing dividends on old shares and reduce the original commercial shares to 337,500 yuan. In addition, the Ministry of Finance allocated 3,662,500 yuan of Fuxing Public Bonds as "Fuxing Public Bonds". Official shares", totaling 4 million yuan. In February 1937, the Ministry of Finance approved this proposal, and at the same time appointed Wu Qiding, Director of the Taxation Department of the Ministry of Finance and Chairman of Siming, Sun Hegao, Xu Jizhuang, Wu Zhenxiu, Sun Zhuyu, and Li Tinggen as "official shares". The directors of the commercial unit are Yu Zuoting, Li Zanhou, Li Shuming, and Zhu Shoumei. Yu Qiaqing retired and became the supervisor of the commercial unit. From then on, Siming, China Commerce, China Industrial, and China National Bank were collectively known as the "Small Four Banks" jointly run by government and businessmen. As for Sun Hengfu, the Ministry of Finance canceled his qualifications as a shareholder and director on the grounds that he had a shortfall of more than 20 million yuan and his equity capital was not able to cover his debts.