Auction: CSS36 - Banknotes, Bonds & Shares and Coins of China and Hong Kong
Chinese Imperial Government Honan Railway 5% Loan, bond for 100 pounds, folio number 5777, large format piece, green and yellow with black English text and coupons, only 7000printed at the time, also a fractional scrip certificate,
The Honan Railway Loan of 1905 was originally for the capital sum of
£700,000. However, a subsequent additional loan of £100,000 was later
arranged in 1906 on the same terms as the original loan and
consequently the total capital was increased to £800,000.
The loan was issued by “…authority of an Imperial Edict of 23rd April
1905 and officially communicated by the Wai Wu Pu1 to the British
Minister at Peking, guaranteed as to principal and interest by the direct
obligation of the Imperial Government of China and having a first charge
upon the security of the permanent way, rolling stock and entire property
with freight and earnings of the existing line of Railway from Taokou to
Chinghua in the province of Honan.”
The financial institution which handled the arrangements for the issuance
of bearer bonds was the Hongkong and Shanghai Banking Corporation
on behalf of the Peking Syndicate Limited, but then they were
subsequently replaced by Lloyds Bank in London and by the Chartered
Bank of India, Australia and China.
Much later in 1936, after a renegotiated agreement or what was termed
a “readjustment”, the Hongkong and Shanghai Banking Corporation were
once again appointed as the bankers for the Peking Syndicate Limited.
The illustration of these bonds clearly shows where the name of the Hong
Kong and Shanghai Banking Corporation was deleted and an over-print
notation was added to specify “Lloyds Bank Limited”.
Bearer bonds were issued at different dates 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 Taokou
to Chinghua in the Province of Honan.
the bond fine, tear at central left border, the scrip almost uncirculated (2)