The history of the city of Jinshi is inextricably linked to its advantageous geographical position in China, which defined its commercial character from the very beginning. The city's name, which translates as "market by the ford," directly points to its historical role as an important economic center.
The first records of the settlement date back to the Ming Dynasty. The town was founded in 1514 as Jinshi village at a ford across the Lishui River. Initially, it was part of Lixian County, but due to rapid economic growth, its administrative status changed several times until it became an independent county-level city.
Jinshi owes its development primarily to its strategic advantages. The city is located on the northern bank of the navigable Li River, near where it flows into the Dongting Lake system. This location was the terminus of navigation for medium-sized vessels, making it a natural transshipment point. Its successful location at the crossroads of important trade routes contributed to the city's rapid growth and prosperity over the centuries.
Since its founding, Jinshi developed as a bustling and unfortified (wall-less) economic hub. It served as the main collection point for grain and cotton from the surrounding plains, as well as hemp, timber, tung oil, and tea from the upper reaches of the Li River. A large community of merchants from other provinces, particularly Shanxi, established themselves in Jinshi and participated actively in its commercial life.