Aerial view of the Shenzhen Universiade Sports Centre Stadium in Shenzhen city, south China's Guangdong province, 14 April 2015. China's asset bubble did not burst last year, it just changed location ª from equities to residential property. Last month, in an effort to cool the frenzy, the government introduced property price cooling measures. On Friday, official data showed that these have halted the run in cities including Shenzhen. There, interest looks set to shift back to the stock market as a scheme will open soon, allowing foreigners to trade Shenzhen-listed stocks through Hong Kong accounts. In 1980, as part of Deng Xiaoping's reforms, Shenzhen was designated a special economic zone; a test ground for a more freewheeling, capitalist system under Chinese communism. Its proximity to Hong Kong bolstered its position in modernisation drives. In the most recent residential property recovery it has also led the way: prices have nearly doubled in two years. The appeal is not just speculative. Shenzhen is home to China's Silicon Valley, hosting tech companies from Tencent and Huawei to space explorers and start-ups. In October, Apple said it will open a research lab in the city. Taiwanese iPhone assembler Foxconn and SoftBank-owned chipmaker Arm will, too.
