Dreams of quick riches give way to disappointment for shell-shocked investors

The new millennium began with much euphoria, but the year looks likely to end with a whimper - at least for investors. For those who entered the new year dreaming of new riches, the ensuing 12 months have been a dismal disappointment.

After a buying frenzy early in the year, Hong Kong's market turned bearish as the dream faded.

The year began brightly. Riding the crest of the Nasdaq technology wave, the Hang Seng Index (HSI) hovered around the 17,000 points mark and tested 17,500 in the heady days of February and March before reaching a record high of 18,302 on March 28.

Then the bottom fell out of the dotcom market, sending both the HSI and the Growth Enterprise Market (GEM) into nosedives from which they are yet to fully recover.

The GEM, the second board in the SAR, found itself particularly vulnerable to the crash of the Internet market. After reaching a high of 1,021.74 points on March 28, it spiralled ever downwards, and on Friday closed at a dismal 307.95 points.

The craze for companies listing on the GEM board reached a pinnacle in March and was evident in the long queues sparked by Internet portal Tom.com's initial public offering (IPO). Soon after it started trading, its share price rose to HK$15.35 but is now trading at HK$2.07.