Tom.com, the internet portal backed by Hong Kong billionaire Li Ka-shing, has posted a large second quarter loss triggering a dramatic fall in internet shares quoted on the Hong Kong Stock Exchange.

The information and entertainment portal showed three month losses of HK$148.5m (£12.7m). One week previously it made redundant 80 of its 500 staff to cut costs. Revenues for the period were HK$5.27m (£450,000). The web site launched in June 2000 following a March floatation of the company that saw frenzied buying raise the share price by over 300%. The share price has since fallen dramatically, although it is still above its floatation price.

The technology-biased Growth Enterprise Market (GEM) fell to more than 50% below its launch level in March 2000 in the wake of Tom.com’s results.

On Tuesday of this week, Tom.com said it had received a licence to set up a wholly owned investment company in China to invest in internet businesses there. The company said it was looking to acquisitions to speed its growth.

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