China, Republic. 3 x $20
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Lot of three $20 Republic of China Super Petchili 1913 5% Lung-Tsing-U-Haï railway bonds, graded Very Good 8.
AI-assisted summary
Description from the seller
Purpose: The bonds were issued to raise capital for the construction and equipment of the Lung-Tsing-U-Haï railway. They were also used to repay earlier railway loans.
Issue: The total authorized loan amount was £10,000,000 sterling, of which £4,000,000 worth of bonds was issued in 1913. These were offered in Brussels and Paris by the Banque Belge, on behalf of the 'Compagnie Générale de Chemins de Fer et de Tramways en Chine'.
Face value: The bonds were generally issued in denominations such as £20 sterling or 500 French francs.
Direct obligation: These bonds constituted a direct obligation of the government of the Republic of China and were payable in gold.
Default: The Chinese government ceased meeting its payment obligations on these bonds in 1938 as a result of political instability—including the Shanghai massacre of 1927 and the subsequent civil war.
Contemporary claims: Although the bonds reached their redemption date in 1953, there have been ongoing discussions and even legal action since then over whether contemporary China should repay these historical debts. Some bondholders argue that the current Chinese government is the successor in law to the government that issued them and is therefore obligated to pay. There are historical precedents for such settlements; for example, the United Kingdom succeeded in collecting on a claim in 1987. Recently, bills have also been introduced in the United States that aim to restrict China's access to U.S. capital markets if the country does not comply with international financial rules concerning these bonds.
In short, the bond “Super Petchili 1913 – 5% Lung-Tsing-U-Haï railway” (issued by the government of the Republic of China) is an item of considerable financial and historical importance. It bears witness to foreign investment in Chinese infrastructure during a period of profound political change. Although today they are regarded primarily as collectibles, whether they may still have any current value remains a matter of ongoing debate.
These 3 bonds are in good condition and are accompanied by the certificate of authenticity on the reverse.
Purpose: The bonds were issued to raise capital for the construction and equipment of the Lung-Tsing-U-Haï railway. They were also used to repay earlier railway loans.
Issue: The total authorized loan amount was £10,000,000 sterling, of which £4,000,000 worth of bonds was issued in 1913. These were offered in Brussels and Paris by the Banque Belge, on behalf of the 'Compagnie Générale de Chemins de Fer et de Tramways en Chine'.
Face value: The bonds were generally issued in denominations such as £20 sterling or 500 French francs.
Direct obligation: These bonds constituted a direct obligation of the government of the Republic of China and were payable in gold.
Default: The Chinese government ceased meeting its payment obligations on these bonds in 1938 as a result of political instability—including the Shanghai massacre of 1927 and the subsequent civil war.
Contemporary claims: Although the bonds reached their redemption date in 1953, there have been ongoing discussions and even legal action since then over whether contemporary China should repay these historical debts. Some bondholders argue that the current Chinese government is the successor in law to the government that issued them and is therefore obligated to pay. There are historical precedents for such settlements; for example, the United Kingdom succeeded in collecting on a claim in 1987. Recently, bills have also been introduced in the United States that aim to restrict China's access to U.S. capital markets if the country does not comply with international financial rules concerning these bonds.
In short, the bond “Super Petchili 1913 – 5% Lung-Tsing-U-Haï railway” (issued by the government of the Republic of China) is an item of considerable financial and historical importance. It bears witness to foreign investment in Chinese infrastructure during a period of profound political change. Although today they are regarded primarily as collectibles, whether they may still have any current value remains a matter of ongoing debate.
These 3 bonds are in good condition and are accompanied by the certificate of authenticity on the reverse.
Details
Era
1900-2000
Grade (Certified notes)
Very Good 8
Country/province
China, Republic
Quantity x nominal value
3 x $20
Number of items
3
Theme
Transportation
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