SARS 'to Shut China Stock Market'

April 29, 2003

SHANGHAI, China (Reuters) -- China will shut its stock exchanges from May 1 to May 9 with trade to resume on May 12 to help curb the spread of the deadly flu-like SARS virus, market sources said on Tuesday.

The sources, citing officials of the China Securities Regulatory Commission, told Reuters the Shanghai and Shenzhen exchanges would extend an originally planned May 1-5 break because of Severe Acute Respiratory Syndrome (SARS).
"Markets will resume on May 12, after the weekend. I think the exchanges would soon make announcements on this," said one source who was familiar with discussions on the issue.

Analysts said the government was worried that dealing rooms -- which serve as makeshift dining halls, card-game venues or just places to catch up on gossip for many retirees and part-time punters -- were ripe for an outbreak.

There was speculation also that officials were trying to halt the market's slide since the start of last week.

The closure, one of the longest government-imposed trading halts in the markets' 12-year history, appeared to be generally welcome.

"A longer holiday will help investors calm down and ease fears about the spread of SARS," said Zheng Weigang, a senior analyst at Shanghai Securities.

Expectations of the impending markets break had triggered a rally of more than three percent on Monday.

But share indices fell nearly two percent on Tuesday as wary punters cashed out with regulators failing to make an official announcement on the closure.

China said on Monday SARS had killed eight more people and infected another 203, taking the nationwide death toll to 139 and infections to 3,106.

http://edition.cnn.com/2003/BUSINESS/04/29/china.stocks.reut/