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Net craze sends exchange's watchdog scrambling for answers to price swings

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Hong Kong's stock exchange made 900 telephone calls to companies last month, asking for information about sudden upswings in their share prices.

Lawrence Fok Kwong-man, the executive director of regulatory affairs, said the companies were requested to release statements explaining the reasons behind the share movements or denying knowledge of how they occurred.

He said the increase in requests was most likely a result of the craze for Internet stocks in the past two months.

'As far as price alerts, I can only say it was on the high side,' Mr Fok said.

In April, the Pacific Century Group was rumoured to be looking for a listed company with technological expertise for a back-door listing.

This rumour helped to spark a strong run on telecommunications and technology stocks.

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