Rumors Send Pacific Century CyberWorks Surging on Hang Seng

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.