By courtesy S. D. Wang & Ca.
The third week of September on the Chinese Government bond market contrasted quite sharply with the two preceding ones in that the results obtained more closely approached the normal as established since the reopening of the mart following the Shanghai war of last winter.
Although fluctuations averaged less than a point, the effects were very substantial under the circumstances. While fluctuations and turnover during the first two weeks were such as to discourage public interest the activities of the period under review were sufficient to induce a limited amount of outside participation.
Considering the fact that a more or less serious civi] war has been raging in Shantung between Generals Han and Liu the strength and firmness displayed on the Exchange were remarkable. While prices generally eased off on alternate days not a single day produced anything worse than mixed results. On Monday, Wednesday and Saturday the love] of all issues was raised uniformly, especially on Wednesday when advances were recorded up to three-fifths of a point. The first afternoon session of trading that day was the most active seen in the Exchange since the beginning of the month.
Saturday also saw very consist tent and substantial gains recorded throughout the four periods of trading. The phenomenon of strong prices in an allegedly "logical" weak market was explained by certain "authorities" with the statement that shorts were covering as they saw the rapid approach of settlement day without indications of developments likely to eventuate in time to make the market favour them.
It seemed that with the Manchurian customs receipts including those of the Dairen office definitely Jjtaken away from China, and with a civil war going on in Shantung that was not promising of encouraging results, one might have been justified in assuming that things did not look so good for domestic bonds.
The_fact, however, remains that bond quotations closed the week before settlement with very encouraging advances that in one instance reached a full point and in three others almost that much.
Business also was much improved. With a turnover of something like $15,000,000, it represented an _increase of about a hundred and fifty per cent. over the previous week.
From the standpoint of support ters of the market, the period reviewed was one of the most satisfactory in many a week, Everyone who took a long position at the beginning retired at the end with profits. The graduated and consist tent rise of prices throughout the period was the kind that is ideal for traders, because they had nothing to think about except whether they were satisfied to take realise able profits.
In so "illogical" a situation, most persons who ought to know looked forward at the close on Saturday to continued firmness when the. week-end recess is over.
The record of the week ending September 24 follows:
July Compar- Fluc- Trans-Issue Open High Low Close Close ison' tuation actions "18th Yr. Customs Sept. 25,20 25.80 25,20 25.80 25.25.55.60 170.000 Oct. 25.00 25.00 25.00 25.00 25.00————20,000 Reorganisation Sept, 26.10 25.35 "96.00 25.55.45 75 580,000 Oct. 25.00 25.50 24,95 25.40 2610 30 68 50,000 Disbandment Sept. $1.20 45.40 44,20 45.15 44.85.80 1.20 1,785,000 Oct, 43.30 44.45 43,26 4420 43.40 80 120 '970,000 19th Yr. Customs Sept. 85.50 86.50 35.40 36.50. 35.55" 95 -1.10 690,000 Oct. 84.90 35.55 34,90 35.55 34.70 85 65 250,000 Rehabilitation a 1 ita. Sept. 33. 84.60 33.00 34.60 38.70..90 1.00 830,000 Oct. 33.00 33.85 33.00 38.85 83.00. 85.85 145,000 20th Yr. Tobacco Sept. 31.75 82.50 31.75 "32.50 31.75 75.75 858,000 Oct. 31.80 31.90 31.25 31.90 3125..65.65 590,000 20th Yr. Customs ores Sept. 31.75. 32.80 81.75 82.98 81.78. 41:00 1.05 865,000
Consolidated Tax Oct. ' ae 32.05 81.40 32.08 81:80.75 65 575,000 Sept. 82.8 38.70 32.90 33.70-° 82.80° 90.80 1,280,000 Oct. 32.40 $8.00 82.85...
38.00 82.85.65-.65 980,000 Salt Revenue Sept. 83.95 84,60 33.80 $4.60 38:90.70 80 1,795,000 Oct. 33.20 83,90 33.20 33.90. 3325.65.70 1,515,000
Text read from the printed page and cleaned; old type leaves the occasional error.