China Merchants' shares got a boost after Merrill Lynch said in a research note that the port investors' stakes in some of the most important ports in the mainland had long-term asset appreciation potential of which the market was not taking enough notice. PCCW Ltd, Hong Kong's main fixed-line carrier, soared nearly 7 percent to HK$5.12 amid reports that Spain's Telefonica would buy a stake in the firm. Telefonica holds 5 percent of Beijing-run China Netcom, whose parent is PCCW's second-largest shareholder with a 20 percent stake.