Hong Kong's benchmark Hang Seng Index shattered the 20,000-point barrier for the first time in the last week of 2006, despite predictions that it would not climb significantly until next year.

The Hang Seng Index closed up 276.18 points, or 1.4 percent, at 20,001.91, representing an all-time high during morning trade last Thursday. The day's turnover was as heavy as HK$54.29 billion, 61.5 percent more than the average daily volume of HK$33.6 billion.

Hong Kong-listed mainland stocks, or H shares, also hit a record high as investors rushed to put their cash into mainland firms. The shares rose 1.02 percent, or 104.97 points, to a record high of 10,363.28. Energy, telecom and some banking stocks led the advance.

The Hang Seng Index failed to maintain at over 20,000 points and closed at 19,964.72 on the last trading day of 2006.

But despite its active stock market, the city's communications system slowed to a crawl. A severe earthquake in Taiwan on December 26 damaged several underwater telecommunications cables, leaving banks and trading houses swamped with queries from confused clients.

Banking services, particularly international transactions, were severely disrupted the following day. The Securities and Futures Commission said some licensed intermediaries experienced difficulties communicating with their clients or executing orders.

Spokesman George Lau from Taifook Securities told China Daily they were inundated with queries from clients asking what the problem was and "in response to the influx of phone calls, we issued a notice that part of our local and overseas real-time quotation system and our online trading was affected".

And while callers swamped the hotlines of Hong Kong trading houses, its shopping malls were doing a roaring trade. As the city's economy continues to grow, so does the demand of Hongkongers.

Hong Kong's landmark shopping mall Times Square said it had received as many as 180,000 visitors over the Christmas holiday, an increase of 12 percent compared with the same period last year.

The Hong Kong Tourism Board said the city expected to receive up to 7.6 million mainland visitors over the holiday period that ended yesterday.

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