, Columnist
China's Market Eclipse
Witness a rare phenomenon -- a company whose shares are simultaneously plunging and surging.
This article is for subscribers only.
Like a full solar eclipse, the opportunity to test a theory of market efficiency in real time seldom arrives. Such a chance was presented on Monday when shares of China Vanke, the nation's largest developer outside state control, resumed trading in Shenzhen after a six-month suspension.
China Vanke's local-currency A shares plunged by the daily limit of 10 percent, even as their counterparts in Hong Kong climbed as much as 9.6 percent. The divergence is explained by a valuation gap that opened up since the Shenzhen shares were halted on Dec. 18 amid a hostile takeover attempt by Baoneng Group.