Wednesday, July 10, 2013

China’s External Loan Bonds

Tientsin-Pukow Railway Loan of 1910 - Deutsch-Asiatische Bank - Berlin Issue, 5%, Capitalization 5 Million Pounds Sterling, £100.
Condition: Excellent

Country: China
Year: 1910

Nearly all the bonds that we sell are External Loan Bonds which the Chinese Government negotiated with foreigners. The various bonds that we deal with are of particular interest to collectors for several reasons as follows:

Language: The language of the text on the bond certificates relating to external loans is at least partially in a western language. This allows a small insight into events that took place in China and provides a documentary record of those events. By contrast, the bond certificates from internal loans were usually written in Chinese characters and it is difficult for a foreigner to translate and understand the text.

Historical Appeal: China bonds have an inherent historical appeal as some of the loans were related to very specific historical incidents or political situations that occurred in China.

Aesthetic Appeal: Many China bonds are attractive documents which are aesthetically pleasing, larger and more ornate than most other foreign bonds coupled with quality printing makes them almost “works of art”.

Collection Range: There were a limited number of Chinese external loans and most are affordable. The possibility of forming a complete collection is quite possible.

Redemption Hope:
Some investors hope that China bonds relating to loans which are in default by trhe Chinese Government, might at some time in the future be redeemed with re-payment of principal and with substantial compensation for lost interest.

In the unlikely event that the current Chinese Government did decide to honor the outstanding debts from the previous Chinese administrations of the turbulent period during the early part of the last century, then the unredeemed bearer bonds may have substantial value.

For more information visit our web site,, or call George LaBarre at 1-800-717-9529.

George H. LaBarre Galleries - Collectible Stocks and Bonds and Old Stocks and Bonds
A foreign antique stock and bond company.

*Source: Historic Foreign Bonds of China by John M. Thomson (2012)

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