BANKING & FINANCE - Aug. 27, 1992

Chinese Stock to Be Sold by Phone: Officials in Shenzhen, China, said they will install a telephone system for buying and selling stock to try to prevent a recurrence of riots by frustrated investors. The riots occurred Aug. 9 and 10 when more than a million people lined up in the streets for a chance to buy stocks. Investors first buy application forms and a lottery is held, with the winners allowed to buy stocks. The riots occurred when would-be investors lined up to buy the application forms and rumors spread that corrupt officials were hoarding them. The state-run Xinhua News Agency said a number of Chinese financial institutions are installing computer software to handle telephone sales.