History of Super-Petchili Bond
When the Chinese Imperial Dynasty was overthrown in 1911, it was replaced by the Republic of China. This new government wanted to take advantage of the new opening to international capital markets, hence the issuance of a series of bonds to finance the development of this new nation.
The Super-Petchili bond is part of these bond issues and is perhaps one of the most recognized bonds by collectors. It was issued at the beginning of the 20th century and its purpose was to finance some public works of the government, such as the financing of the The Lung Tsing U Hai Railway and some improvements to the port of Hanchow (known today as Lianyungang). The resources were also used to cover some previous debts, as the Pien Lo Railway Loans of 1905 and 1907. Only 29,019 bonds were issued. With a face value of £20 Sterling or 500 Francs.
The term Petchili comes from Pe-tche-li, and corresponds to a region that was known simply as Zhili or Chihli. In 1928 this region became a province and was renamed Hebei, a name that remains to this day.
Originally, a term of 50 years was agreed to pay the bonds, however, in 1938 the Chinese government stopped paying the bonds, this is because the People’s Republic of China, which is the successor of the first Republic of China, has never recognized this debt. China's unacknowledged debt to date is estimated at $1 trillion of dollars, after adjusting for inflation, interest, and damages.
During the administration of Donald Trump, the possibility of presenting claims on the enormous debt issued in China's bonds was studied, however, specialists consider it unlikely that any progress will be achieved on this issue.
If you want to own a part of this history, at IRVE Antiques we have the PASS-CO certified Super-Petchili bond. You can enter HERE for more information.