500 Francs Chemin de Fer Lung-Tsing-U-Hai Railway Gold Bond - 1925 dated Uncanceled Chinese Bond
Inv# FB5106 Bond
500 Francs 8% Uncanceled Bond. Around 20 coupons present. Article relating to this Chinese item: https://www.bloomberg.com/news/articles/2019-08-29/trump-s-new-trade-war-weapon-might-just-be-antique-china-debt
The 500 Francs Chemin de Fer Lung-Tsing-U-Hai Railway Gold Bond of 1925 stands as a significant artifact of early 20th-century international finance and Chinese infrastructural development. Issued by the Government of the Chinese Republic on June 10, 1925, in Paris, these 8% Treasury Bonds were part of a series designed to finance the expansion of the Lung-Tsing-U-Hai (Longhai) railway line. This vital east-west route was intended to connect the port of Lianyungang in Jiangsu to Lanzhou in Gansu Province. These bonds, often featuring French text, were sold in the European market to attract capital. The 500-franc denomination provided foreign investors with a stake in China’s rapidly modernizing transportation infrastructure.
Historically, these bonds were secured against the revenues of the railway and other taxes. They also benefited from rights associated with earlier gold loans, such as the 1913 “Super Petchili” loans. However, the construction of the railway was frequently hindered by the tumultuous political situation in China, including warlord conflicts and later the Second Sino-Japanese War.
A bond is a document of title for a loan. Bonds are issued, not only by businesses, but also by national, state or city governments, or other public bodies, or sometimes by individuals. Bonds are a loan to the company or other body. They are normally repayable within a stated period of time. Bonds earn interest at a fixed rate, which must usually be paid by the undertaking regardless of its financial results. A bondholder is a creditor of the undertaking.
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