23.06.201404:33:35UTC+00Hong Kong stocks slated to hit month-low

Hong Kong stocks are headed for it's month-low after its recent gains as it declined today when phone companies and developers fail to deliver good reports.

The Hang Sang Index fell by 1.1% to 22,941.86, 2:34 pm, Hong Kong time negating the recent increase of the index by as much as 0.9%. Another loser for the day is the H-share index or the Hang Seng China Enterprises Index that also lost 0.9% to 10,300.38.

Earlier in the trade, Chinese and Hong Kong stocks seemed on their way to positive territory following a private report that indicated an expanding manufacturing industry for China. The preliminary index of factory activity for the biggest economy in Asia increased to its highest in seven months at 50.8 for this month alone as per report of HSBC Holdings Plc and Markit Economics.

The dragging Chinese economy worsened this quarter with capital spending displaying weakness. A decline in the number of companies that applied for credit is also visible. This information is according to China Beige Book.

A researcher at the Chinese Academy of Social Sciences, Yi Xianrong, wrote in his article for Ahanghai Securities that the central bank of the nation will not loosen its monetary policy in the second-half of the year because it's already “appropriately tight”. It will only fine tune with targeted reserve requirement ratio adjustments, he added.