Hong Kong stocks took a nose dive and fell for their first decline in 3 months. Much of the market drop was triggered by Foxconn International Holdings Ltd. As the world’s largest mobile phone maker, Foxconn’s loss of 8.3 percent increase the loss gap.
Danny Yan of Taifook Asset Management, which looks over $400 million stated, “Globally there’s plenty of liquidity, however, confidence hasn’t come back yet,” and further added, “We can be pretty certain that growth in the second half of the year is going to slow. As a result, all this capital sits there, not knowing what to do.”
Other factors included the lagging growth of personal incomes in the United States and the slow economic recovery posted by the U.S Government. Yan said he is, “optimistic that the U.S. will in the next couple of months introduce policies to support the economy.”
Over-all there have been 34 stocks that have fallen among the Hang Seng Index.
