Media reports that Hutchison Telecommunications International Ltd (HTIL) is planning to cut jobs and salaries resulted in the stock closing above its offer price for the first time since its debut on the main board last month. However, analysts questioned the accuracy of yesterday's Chinese press reports which said the group's Hong Kong operations, Hutchison Telecom and Hutchison Global Communications (HGC), would implement a blanket 30 per cent pay cut on all 5,000 employees and make an unspecified number of people redundant. Despite this, HTIL closed up 1.68 per cent at $6.05, with $191.68 million worth of shares changing hands, the first time it has ended above its $6.01 offer price since the stock began trading on October 15. A Hutchison Whampoa spokeswoman refused to comment on the rumours, but added: 'We continuously review our business and operations, and if necessary, we may have to streamline our operations in order to remain competitive and to achieve optimal efficiencies.' Sources told the South China Morning Post that cost-cutting measures, such as office relocations, were in the pipeline. Analysts said these were more likely than a 30 per cent pay cut, which they described as unrealistic. It is understood that HTIL's fixed-line arm, HGC, and its Hutchison Telecom mobile division are planning to move their offices from Hunghom to Tsing Yi container terminal No9 to cut costs. An analyst with a French investment bank said it made sense for HTIL to implement cost-cutting measures in Hong Kong because the city presented a more mature environment where it could sustain belt-tightening measures such as outsourcing non-core operations and relocating back offices. Hutchison Telecom made a net loss of $195 million for the first half this year, against a net profit of $84 million a year ago, due mostly to 3G start-up costs. The analyst was sceptical about reported pay cuts because the group still needs to boost its 3G business in Hong Kong through aggressive marketing. HTIL, which has operations in Macau, Thailand, India, Israel, Sri Lanka, Ghana and Paraguay, had accumulated losses of $5.2 billion by June and subsequently announced that no dividends would be paid. Kenny Tang, an associate director of research at Tung Tai Securities, said the company needed to generate earnings quickly so that it could declare a dividend, which made cost-cutting a priority.