The Securities and Futures Commission and the stock exchange are urging investors not to rely on market rumour when they invest in technology and Internet-related stocks. Their warning came as brokers yesterday said the SFC had collected investors' trading information from them relating to the recent jump in the share price of Pacific Century CyberWorks. The two bodies said strong investor interest in companies planning to invest in the technology and Internet sectors had led to share-price surges. 'It is important that investors should understand thoroughly the nature of the investment they propose to make,' they said. 'Investors should exercise judgment and caution when analysing or relying on unofficial reports and market rumours which may have impact on the price and trading activity of securities.' In recent months, investors have flocked to companies such as CyberWorks, whose share price has rocketed in recent sessions, partly on rumours - denied by the company - that it is seeking a Nasdaq listing and a share swap with software giant Microsoft. Last Thursday, CyberWorks' share price jumped 41 per cent as $5 billion worth of its shares changed hands, more than one-third of the stock market turnover. Yesterday's warning came after the stock exchange closed. On the day, the Hang Seng Index fell 267.47 points to finish at 16,660.82. The blue-chip index closed at a record 16,928.29 points on Tuesday on the back of heavy buying of technology counters. Brokers said the SFC and the stock exchange were increasingly concerned about the market's enthusiasm for technology and Internet-related plays. Process Automation (Holdings) and China Prosperity Holdings (Hong Kong) issued separate announcements in October disclosing the SFC was investigating possible market manipulation in the trading of their shares. Former Hong Kong Stockbrokers Association chairman Chu Chung-tin welcomed yesterday's warning by the SFC and the stock exchange, although he said it would have minimal cooling effect on 'hi-tech fever'. 'Many investors are investing in hi-tech stocks based on market rumours. 'This trading is no different from gambling in Macau,' Mr Chu said. 'Regulators will find it difficult to change the attitudes of investors.' Christopher Cheung Wah-fung, a stock exchange council member and managing director of Christfund Securities, said enthusiasm for hi-tech and Internet-related stocks was a worldwide trend. 'I think [Hong Kong's market] regulators do not need to worry too much,' he said. 'Hi-tech stocks listed on Nasdaq also have high volatility.' Local regulators had to remember not to tighten the market too much or it would discourage local and foreign hi-tech stocks from seeking listings. 'That would kill . . . the Government's plan to turn Hong Kong into a hi-tech centre in Asia.'