After a day of riots by frustrated would-be investors, the southern boomtown of Shen-zhen suspended stock market trading Tuesday as thousands more people lined up for a chance to purchase red-hot shares, reports said.
Police fired tear gas and used truncheons late Monday to break up a protest by several thousand people seeking to purchase stock who claimed corrupt officials were hoarding applications, Hong Kong media reported.The rioting capped three days of growing disorder in Shenzhen as hundreds of thousands of people from all over China lined up for a chance to buy new stock issues. One official count put the number at 1 million.
The disorder in Shenzhen, which borders Hong Kong, could undermine reformists in China's government who have been trying to bring about rapid economic liberalization, including the development of stock markets.
Zhao Shaohua, deputy director of the Cabinet, blamed the disturbance on growing pains, noting that China has little experience with stock markets.
At least 10 people, including some policemen, were injured in Monday's disturbance, and several police vehicles were burned, Hong Kong television said. Protesters chanted "Down With Corruption" and accused officials of keeping coveted stock-purchase applications for themselves and their families.
Riot police used tear gas, water cannons and beatings to quell the disturbance, the South China Morning Post said. It said three people were arrested.
The angry crowd dispersed late in the night, in part because officials promised to distribute more share applications Tuesday.
Police watched warily as thousands of people lined up Tuesday outside offices issuing the applications.