Shares of Pacific Century Cyberworks rose 41 percent by Thursday’s close on Hong Kong’s Hang Seng Index following market rumors.
The increase was fueled by rumors in the Chinese-language press that PCCW had arranged an equity swap with Microsoft and was planning a Nasdaq listing. Both rumors were denied by PCCW chairman and CEO Richard Li.
More than HK$5 billion (US$650 million) worth of PCCW stocks changed hands. That’s in excess of a third of total Hang Seng volume for the day.
The stock reached an intra-day high of HK$18.20 before closing at HK$15.60.
The stock price increase added about HK$38 billion (US$4.9 billion) to the company’s market capitalization, transforming PCCW from HK’s ninth-largest company to the eighth-largest.
PCCW was formed seven months ago by Richard Li, the younger son of Hong Kong tycoon Li
Ka-shing, chairman of Cheung Kong and Hutchison Whampoa Ltd.