Transportation of passengers and goods between Hong Kong, Macao and Guangzhou was handled by junks and local shipping agencies. The Hong Kong and Canton Steam Packet Co., founded by Jardine Matheson & Co., Dent & Co. and a couple of other leading firms in 1848, operated two steamships plying between Hong Kong and Guangzhou. It closed down in 1854.
HongKong Canton & Macao Steamboat Co., formed by local shipping interests in 1865, operated ferry services between Hong Kong, Guangzhou and Macao.[38]
From the end of the 19th century onwards, local Chinese merchants as well as Chinese returning from abroad began to set up shipping companies, taking advantage of the newly passed legislation that Chinese-owned vessels were allowed to sail up the river. Yuen On (元安) and Shiu On (兆安) Steamship Companies were founded in 1901.[39] The two companies combined to provide midnight ferry services between Hong Kong and Guangzhou by two steamers, the Kwong Tung (廣東) and the Kwong Sai (廣西). Although owned by Chinese capitalists, they were commanded by European captains and officers.
Soon there were more Chinese-owned shipping companies providing services to nearby cities.