Punters yesterday brushed aside takeover denials from Hong Kong Chinese Bank (HKCB) and chased the bank's shares up another 25 cents to HK$2.875. Volume was again heavy, with 31.67 million shares changing hands. The share has surged 70.5 cents, or 32.4 per cent, since closing at HK$2.17 on Monday, driven by rumours the bank is the target of a restructuring or takeover. The rumours were dismissed as 'inaccurate' in a statement to the stock exchange on Wednesday, though the bank said that from 'time to time' it had been approached by other financial institutions who wished to explore possibilities for merger and acquisition. 'However, no negotiations have taken place as a result of such approaches,' it added. Speculation continued unabated after the denial was issued, and from a day's low of HK$2.52, the share price was driven to a high of HK$2.95 before closing yesterday at HK$2.875. Takeover talk aside, Hong Kong Chinese Bank has long presented an opportunity to investors because of its low market valuation. However, the latest gains have succeeded only in closing the discount to book value of HK$2.91 at which the share has been trading. In a research report issued earlier this year when the share was trading at HK$1.95, Salomon Smith Barney said the bank presented a buying opportunity up to HK$3.40. Among the potential bidders for a key stake in Hong Kong Chinese Bank should it be on the market, would be Citic Ka Wah Bank which was outbid last month by Bank of East Asia in its attempt to take over First Pacific Bank. However, Citic Ka Wah chief executive Cai Zhong-zhi said yesterday the bank had no identified target in its sights at the moment. An official of Singapore-based Oversea-Chinese Banking Corp - which has declared an interest in acquiring a presence in Hong Kong - told Business Post it did not comment on market speculation. Graphic: hkg08gbz