er Assistance Chinese banking circles in Shanghai unanimously welcomed the news of the British credit to China yesterday and acceleration of "buying activi was noticed in both the foreign exchange and domestic bond markets. Prices of the various issues of Chinese government bonds registered an increase ranging between 70 cents and 90 cents, and the gold-buying movement suffered a sudden setback.
Prices of foreign currencies had dropped already on Wednesday when the British loan was heralded in financial and Chinese press circles.
Commenting editorially on the loan the "Shun Pao" expressed great relief that the British government had given the new credit to China which news, it was claimed, indicated strongly that the European Powers were ready to take positive action in assisting China in her present crisis. Concluding, the paper stated that the economic assistance would no doubt help China in her resistance but in order to stop the aggression the Powers should enlarge their scope of support by applying economic sanctions against the Invading nation.
It was learnt from Chinese banking circles yesterday that the two Chinese government banks which subscribed half of the loan, as was mentioned by Sir John Simon, Chancellor of the Exchequer, are the Bank of China and Bank of Communications, both having Mr. T. V. Soong, the well-known financier, as their director. Mr. Soong is also chairman of the board of the former bank. Chinese bankers here were quoted by the Shing Sheng News Agency as having expressed the opinion that hereafter the Chinese dollar and foreign exchange rate would be further stabilized, Chinese bankers here also learnt with relief yesterday that Chinese bonds in the London market were following an upward trend, their prices having increased by one or two pounds.
Text read from the printed page and cleaned; old type leaves the occasional error.