Hong Kong's Stocks Decline to One-Year Low; Foxconn Slumps

By Hanny Wan

Aug. 18 (Bloomberg) -- Hong Kong stocks fell, dragging the benchmark index to a one-year low. Foxconn International Holdings Ltd., the world's biggest contract maker of mobile phones, plunged 10 percent after saying it will report a ``significant decline'' in first-half profit.

New World Development Co. lost 3.3 percent following the resignation of Hong Kong's former housing chief Leung Chin-man from a unit of the company after the city's chief executive officer ordered a review of possible conflicts of interest related to the job. Cnooc Ltd., China's biggest offshore oil producer, led oil producers lower after crude oil prices retreated on Aug. 15.

The Hang Seng Index lost 96.06, or 0.5 percent, to 21,064.52 as of 10:19 a.m. local time, set for its lowest close since Aug. 17, 2007. The Hang Seng China Enterprises Index, which tracks so- called H shares of Chinese companies, fell 1.1 percent to 11,049.12.

To contact the reporter on this story: Hanny Wan in Hong Kong at hwan3@bloomberg.net