Internet stocks rallied again yesterday as investors shrugged off the mainland Ministry of Information Industry's warning that foreigners are banned from participating in telecommunications network services.
Hong Kong's 'cyber' stocks saw another round of active trade and the king of the sector - Pacific Century CyberWorks - rose even though a hardening line on the mainland's telecommunications sector could set back the group's Internet strategy there.
CyberWorks jumped 6.55 per cent to $6.50, New World CyberBase rose 3.57 per cent to $2.90 and on-line broker Celestial Asia Securities Holdings soared 13.11 per cent to 69 cents.
Smaller tech plays also continued their strong run, although the blue-chip Internet play Wharf (Holdings) shed 3.06 per cent to $23.75.
Technically, the ministry's announcement - made in a special press conference by minister Wu Jichuan on Tuesday - reiterates a longstanding line.
However, in spirit it goes against market openings in telecommunications services mooted by Premier Zhu Rongji earlier this year as part of the mainland's bid to join the World Trade Organisation.
'It's a power struggle,' said Goldman Sachs Internet analyst Rajeev Gupta.