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Chinese Stocks Tumble After Disappointing Manufacturing Report And Amid Credit Crunch

Mamta Badkar

The Shanghai Composite is down nearly 2% to 2,101.

This follows on disappointing manufacturing data, with the HSBC Flash PMI reading hitting a nine-month low of 48.3. The contraction in manufacturing comes as analysts are lowering their growth forecasts for China.

Concerns about a liquidity crunch continued to mount, and stocks also took a beating as money market rates surged.  Fed chairman Ben Bernanke's prepared remarks that the taper could begin as early as this year, also hurt Asian markets.

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