ABSTRACT
After the Sino-Japanese War ended with Japan's unconditional surrender in August 1945, the Nationalist government returned to Nanjing from its wartime capital of Chongqing. Many high ranking officials flew between Nanjing and Shanghai weekly to enjoy the latter's extravagance and pleasures after the long bloody war. Shanghai's financial markets flourished because of the enormous inflow of funds from the hinterland, the demand for loans to reconstruct national industries, and trade in luxury consumer items. Nightclubs, dancing girls, luxurious hotels, and crowded department stores emerged with the postwar economic recovery and financial prosperity. The appearance of peace and prosperity, however, did not last long because peace talks between the Nationalist Party and the Communist Party broke down. The prospect of a new civil war clouded the sky.
