China's plan for new Shenzhen sparks frenzy of speculation

Hong Kong

IT didn't take long for news that China would set up an economic zone near Beijing to touch off an investor frenzy.

Within 24 hours of Saturday's announcement that the government would create the Xiongan area in Hebei province - in the same spirit that Shenzhen and Shanghai's Pudong were built - hordes of prospective buyers had thronged to the region.

Highways were clogged as they came to purchase real estate, with some camping outside property agent offices overnight, according to local media reports.

On Sunday the government banned all property sales in the zone to stem speculation, according to the National Business Daily.

On Monday, shares of Chinese cement, building and port-related stocks surged in Hong Kong amid optimi…