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China stocks fall on slower PMI, Europe

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factory_3 November 23, 2011 (Chinavestor) Prolonged European crisis and a slowing Chinese manufacturing data was responsible for Chinese stock declines in Asia on Wednesday. The Hang Seng Index (INDEXHANGSENG:.HSI) fell 387.2 points or 2.2% for the day with Chinese stocks dragging the broad index down. The Hang Seng China Enterprise Index (INDEXHANGSENG:.HSCEI), measuring the performance of Chinese stocks listed in Hong Kong, fell 2.7%. Downside was limited on the Mainland tough for the Shanghai Composite Index (SHA:000001) fell a mere 17.6 points or 0.7% for the day. Preliminary purchasing managers' index data suggested China's manufacturing sector contracted the most in three years. But the Central Bank of China lowered reserve rations for some banks by 50 basis points after three years of tightening.

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