Notes between 1870-1880

Interesting stuff


1)	Futures market exist in Shanghai in this early era! 

Evidently seen in 1871 database, there are different quotes for delivery in the future. Eg, 
for HSBC old issue in 1871, the quote for cash sales is $189 but $205 for delivery in June. 
However such quotes only stated once during the 1870s. Was not until the 1900s when the paper
has specific columns for the forward markets.

2)  Dividends important during that era

Always have the impression that dividends is very important for China during the era. 
Many companies I observed paid out dividends even though they are making loss.  
Bonus dividends are also a common practice in the companies. Yet there are companies which paid 
dividends triennal. Eg,

North China Insurance in (1870 - 29M), (1871-29R), (1872- 21J), (1873- 22J)
Union In. Society of Canton in (1871-30R), (1872-22J), (1873-23J)

3)	Exchange not fixed

The exchange between Mex$ and Taels does not have a fixed rate during this decade.(later in the period, it is
fixed at 73). Companies denominated in $ have different exchange rate for transactions or 
dividends payouts. 

The obvious case is in 1876, where there are 6 companies whose shares are denominated in Mex$, 
and 5 are quoted exchange in the paper, all have different exchange. They are

HSBC: (1876-5F)
China Traders' Insurance Co.,Limited: (1876-19F)
Chinese Insurance Co.,Limited (1876-23F)
Hongkong Fire In. Co.,Limited (1876-26F)
China Fire In. Co.,Limited (1876-27F)


4)	Shanghai Steam Navigation Co., (in Liquidation)

Although the company has already been liquidated, it has been quoted in the papers for so long, and there are closing quotation. 
(Are there people still buying the shares?) The company was first liquidated in 1877, 
but it was quoted in the papers until 1884 and its closing quotation was from T26.25 in 1877 
(1877- 7S) to 0.9T in (1883-8S). For shareholders, after the company has liquidated, 75T return 
on their capital invested in 1877 and after which 2T return on capital was quoted.

Shanghai Steam's Navigation Company's paid up was 100T

5)	New issue of shares

During this era, companies have new issue of shares denoted by years. Eg:

Shanghai Steam Navigation Co Scrip 1871 (row 14, 1871)
North China Insurance Co, 1872/74 (row 23, 1874); 
North China Insurance Co, 1875/77 (row 24, 1874), 
North China Insurance Co., 1878 (row 19, 1878)
Union In. Society of Canton 1871-73 (row 25, 1874), 
Union In. Society of Canton 1874 (row 25, 1874)



Change in capitalization structure

1)	Compagnie Du Gaz  
1877: No of shares: 1000 (15G), Value 50T (15H), Paid-up 50T (15K)
1878: No of shares: 500 (15G), Value 100T (15H), Paid-up 100T (15K)

2)	China's Trader Insurance Co., Ltd  -dilution of capital
        structure

1877: No of shares: 200 (17G), Value: $5000 (17H), Paid-up: $1500 (17K)
1878: No of shares: 600 (17G), Value 1666.67 (17H), Paid-up, $500 (17K) (an odd par-value for 
      shares)



Some Notation and things to note

1)	$ mean Mex$ as in 1929, it was stated explictly that the exchange was
	for Mex$ to Taels.

2)	Before 1876, Compagnie du Gaz was simply known as the French Gas Company

3)	For Sterling quotations, it is denoted as pounds.shillings.pence eg 4pounds 2 shillings 
	and 3 pence will be denoted as 4.2.3. Sometimes, when have half penny, we will have the 
	4th decimal place, ie if it is 4pounds 1 shillings and 3.5 pence, it will be quoted as 
	4.2.3.5

4)	No closing quote for Shanghai Waterworks (1880 -29D)

5)	There was a bonus dividend of 4.25% for Vcitoria Fire Insurance in 1875 (1875-30J)

6)	There was also a bonus dividend of $12.25 for Hongkong Fire Insurance in 1872 (1872-27J)

7)	Shanghai Steam navigation Co, in 1871 (1871-13D) has quotation in range, so we took the 
	average

8)	For China and Japan Marine Insurance Co., (1873-26D), its closing quotation just stated 
	27th March.

9)	For conversion of Mex$ to Taels, we have used the exchange rate quoted in the North China 
	Herald then.

10)	When closing quotation stated discount or premium, we assume it is discount/premium over
	the paid-up price
