Hong Kong's benchmark Hang Seng Index shattered the
20,000-point barrier for the first time in the last week of 2006, despite
predictions that it would not climb significantly until next year.
The
Hang Seng Index closed up 276.18 points, or 1.4 percent, at 20,001.91,
representing an all-time high during morning trade last Thursday. The day's
turnover was as heavy as HK$54.29 billion, 61.5 percent more than the average
daily volume of HK$33.6 billion.
Hong Kong-listed mainland stocks, or H shares, also hit a record high as investors rushed to put
their cash into mainland firms. The shares rose 1.02 percent, or 104.97 points,
to a record high of 10,363.28. Energy, telecom and some banking stocks led the
advance.
The Hang Seng Index failed to maintain at over 20,000 points and
closed at 19,964.72 on the last trading day of 2006.
But despite its
active stock market, the city's communications system slowed to a crawl. A
severe earthquake in Taiwan on December 26 damaged several underwater
telecommunications cables, leaving banks and trading houses swamped with queries
from confused clients.
Banking services, particularly international
transactions, were severely disrupted the following day. The Securities and
Futures Commission said some licensed intermediaries experienced difficulties
communicating with their clients or executing orders.
Spokesman George
Lau from Taifook Securities told China Daily they were inundated with queries
from clients asking what the problem was and "in response to the influx of phone
calls, we issued a notice that part of our local and overseas real-time
quotation system and our online trading was affected".
And while callers
swamped the hotlines of Hong Kong trading houses, its shopping malls were doing
a roaring trade. As the city's economy continues to grow, so does the demand of
Hongkongers.
Hong Kong's landmark shopping mall Times Square said it had
received as many as 180,000 visitors over the Christmas holiday, an increase of
12 percent compared with the same period last year.
The Hong Kong Tourism
Board said the city expected to receive up to 7.6 million mainland visitors over
the holiday period that ended yesterday.
(For more biz stories, please visit Industry Updates)