Marked Decline on the London Market The effect of the Kiangsu-Chekiang war upon the market for Chinese bonds in London has been unfavourable to the investor. Since the war started various Chinese issues have steadily decreased, the effect on the market being' the result' of a loss of faith in the ability of the Chinese Government to maintain peace in the Tand and to offer security to property. The Shanghai-Nanking and Shanghai-Hangchow-Ningpo Rail way have suffered more than other issues but this cannot be explained alone by a possible loss of profits, during the war periods. The fear of the investor is that valuable rail-lines torn up and cars misused and that the Chinese Government will not reimburse the railway for the losses. suffered.
Both these railways are making, new financial arrangements with a to increasing their rolling stock and to a possible development of the line. Chinese railway offi als had been hoping that the, increased business arising out of. improved facilities would increase the profits and lead to eventual amortization. One of the very serious results of the war, from the Chinese standpoint, is the possibility that these railways will not have an easy market for future financing. way property will be destroyed, The following quotations on the ture of what is happening to Chinese London market give a graphic pie-securities:
Sept. 1 Sept. 10 sanization Loan (1913) 69.00
Chinese Lung Tsung U-Hai Railway 5 p.. G. Loan Chinese Engineering and Mining Company Chinese 8 pie.
10th Year Treasury Bills (Marconi) Chinese 8 pac. Sterlinge Notes, 1925 (Vickers) Shanghai-Nanking Railway po...
anton-Kowloon Railway 5 p.
jon tsin-Pukow Railway 5 po.
Tientain-Pukow Railway second issue 5000 47.00 63.00 40.09 37.50 39.50 65.50 6450 73.00 62,00
Shanghai-Hangchow-Ningyo Railway 5 po.
7200
Chinese Government bonds in the confidence in the abi Shanghai market are holding their Government to meet its obliga own in spite of the war.
The follow particularly with regard to the ing quotations would indicate} secured loans:
Tasue Sept. 4 Sept. 10 th Year Long Term Loan 8320 54.00
Text read from the printed page and cleaned; old type leaves the occasional error.