Framed 1913 China Lung Tsing U Hai 20 Pound Railway Bond

Height: 525mm Width: 295mm

This scarce railway bond was used to raise funds for a major Chinese infrastructure project.

The Lung Tsing U Hai Railway is regarded as being one of the most famous railroads in China. Lung-Tsing-U-Hai describes the Kansuh to sea railway which ran between Lanchow-fu and Haichow.

This bond was issued in 1913 to: finance the construction of the railway; to fund the redemption of the Pien Lo Railway Loans of 1905 and 1907 as well as to improve the Haichow port.

The loan was secured by the railroad's revenues and was a direct obligation of the Government of the Republic of China which was founded only 2 years earlier.

The National Assembly of 1912 approved the bonds, it has been signed by top officials in the Chinese Government. The face value of £20 Sterling or 500 Francs was payable in gold.

Interest on the loan was for a 50 year period (1913-1953, when the principal was redeemable).

Although the total capital of the railway was £10,000,000, only 29,019 bonds were actually issued which some believe makes them very rare.

There is some discussion online that fully-issued bonds like this may be potentially negotiable. 

Two historic events caused redemption to be delayed: the Shanghai massacre of 1927 was the violent suppression of Communist Party organizations in Shanghai by the military forces of Chiang Kai-shek and conservative factions in the Kuomintang, the Chinese Nationalist Party. That clash led to the long and bloody civil war between the Nationalists and the Communists. 

This bond remains in attractive condition - we understand from the vendor that it has been in this frame for around 40 years. The paper is toned, but the edges look to be quite complete.

SKU: 209652