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Auction: CSS36 - Banknotes, Bonds & Shares and Coins of China and Hong Kong
Lot: 6

1903 5% Gold Loan-Kaifong-Fou/Honan-Fou Rwy
1903 5% Gold Loan Kaifong-Honan Railway,
group of 5 bonds for 500 francs, 1 dated 1905 and signed by Imperial Inspector Yang and 4 dated 1907 signed by Imperial Inspeactor Li,

The Chinese Gold Loan of 1903 was commonly known as the Pien Lo
Railway Loan of 1903. The original capital sum was Fr25,000,000 which
was arranged into 50,000 bonds of Fr500 each.
Subsequently the arrangement was augmented by a second issue of
bonds to the capital value of Fr16,000,000 and the total capital value was
then Fr41,000,000. The loan was issued by authority of an Edict issued
by His Majesty the Emperor of China on 29th October 1903.
The participating financial institutions which handled the arrangements
for the issuance of bearer bonds against the loan were the Compagnie
de Generale de Chemins de Fer et de Tramways en Chine and their
bankers, Banque Belge pour l’Entranger in Shanghai and the Banque
de Paris et des Pays-Bas in Paris and Amsterdam.
Although the agreement was dated 1903, the bonds were subsequently
offered in two issues of 1905 and 1907 as shown in the table above.
Coupons were payable on 1st January and 1st July each year.
The purpose of the loan was for the construction of a railway between
Kaifong-fou and Honan-fou in the Province of Honan. The loan was
secured on the line and revenues of the Kaifong-fou/Honan-fou Railway
and by a direct obligation of the Chinese Imperial Government.
It is interesting to note that the common title for this loan was the Pien
Lo Railway Loan, as that title does not appear anywhere in the official
documents. The name Pien Lo is derived from a combination of two
names. The classical name for Kaifong-fou was “Pien-fang” and the
classical name for Honan-fou was “Lo-yang”. Therefore two elements
were extracted from these classical names to arrive at Pien Lo.
Although the two issues relate to the same loan and the bond certificates
appear similar, there are in fact several differences in the text of the
bonds between the 1905 and 1907 issues.
(K140 and K141), very fine (5)


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