Investors Splurge on Hong Kong Technology Stocks.
Stocks in Hong Kong's technology companies have been gripped
by a buying frenzy since Monday, fueled by rampant speculation that they
stand on the brink of attracting major overseas investors or may develop
more internet-related products. Since Monday stocks in Pacific Century
Cyber Works, New World CyberBase, China Online and GreatWall Technology
have accounted for just below 30% of market turnover. The firms made up
four of the top five most active stocks, on Tuesday, on the Hang Seng
index of companies listed on the Hong Kong stock exchange.
The activity has been largely driven by CyberWorks, the
satellite-based broadband internet service provider, which this week
announced plans to go live in the first quarter of next year. Even after
falling 11.02% yesterday on profit taking, CyberWork's market
capitalization is now $36.45bn, giving it a market value exceeding 17 of
the 33 members of the Hang Seng index. CyberWork's stock price
surge has filtered through to companies with related business,
particularly ISP, China Online, in which it holds a stake.