Hon Hai Shares Fall On News of Foxconn Pay Rise

Hon Hai Precision Industry, the parent company of Foxconn, has seen its shares fall to an all-time low after releasing details of a wage rise for Chinese employees.

The company's shares fell 2 per cent on the Taiwan Stock Exchange, to T$122.

The fall followed the announcement that Hon Hai is to increase wages for Foxconn workers by 30 per cent, in an attempt to better their standard of living.

Foxconn had come under major criticism from human rights groups because of a recent spate of suicides at Foxconn factories.

The fall in share prices is attributable in part to an overall fall of 1.28 per cent in the value of the Taiwan Stock Exchange on Wednesday, which harmed other technology companies' share prices in the process. Shares in contract PC maker Compal Electronics were down 0.6 per cent.

Tom Tang, vice-president at Masterlink Investment Advisory said: "Today the odds are better for stocks to trend lower. The market was hit by a fall in US stocks and foreign funds have been selling."