Shenzhen Trading Resumes Calmly After Disturbances
HONG KONG -- Trading resumed Wednesday on the stock market in China's Shenzhen special economic zone, following a one-day halt called by officials in response to rioting by angry would-be investors earlier in the week. Trading was steady, with prices unchanged from the previous close, as foreign investors appeared unperturbed by what they called the nascent market's "growing pains."</br></br>But reverberations from the violence in Shenzhen, sparked when hundreds of thousands of investors were thwarted in their attempt to enter a lottery to buy new company shares, could still be felt at the country's other stock exchange in Shanghai. Panic selling by local investors sent Shanghai share prices plunging 10% Wednesday. That followed the previous day's 11% drop after word of the troubles in Shenzhen reached Shanghai.</br></br>But the emergence of bargain hunters and Shenzhen's steady performance when it was allowed to reopen after a one-day halt suggests the panic probably won't last. International traders, while cautious about possible political repercussions, tend to be even more sanguine.</br></br>"This is a growing market and there's going to be a certain amount of growing pains that have to be tolerated for the time being," said an analyst at Credit Lyonnais Securities (Asia) Ltd. He added that Credit Lyonnais had received few telephone calls on the Shenzhen unrest, a sure sign that people preferred to wait and see how Chinese authorities react.</br></br>The Credit Lyonnais Shenzhen A Index, which tracks shares sold only to Chinese nationals, closed at 2623 Wednesday, unchanged from Tuesday morning when trading was suspended after a 6% tumble in share prices. The Credit Lyonnais Shanghai A Index fell 616 points to 5429.