CNCo was founded by John Samuel Swire to offer paddle steamer services on the Yangtze River. By the early 1870s John Samuel Swire was convinced that there was an opening for increased steam shipping on the Yangtze River and as he was unable to interest other shipping companies, such as Alfred Holt and Company in undertaking this expansion he decided to establish a new company for this. The China Navigation Company was formed in London in 1872 with a capital of £360,000 chiefly put up by John Samuel Swire and WH Swire with Alfred Holt, Rathbone's, TH Ismay, RN Dale, John Scott, T Barlow and William Imrie and T&J Harrison supplying additional money.