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China stocks see biggest slump in US since 2008

  • Sun Online Desk
  • 27th July, 2021 07:21:31 PM
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China stocks see biggest slump in US since 2008

 

Shares of Chinese companies listed in the US have seen their biggest two-day fall since the 2008 financial crisis.

The Nasdaq Golden Dragon China Index, which follows the 98 biggest US-listed Chinese stocks, has fallen by almost 15% in the last two trading sessions

The index has now plummeted by more than 45% since hitting a record high in February.

The slump comes after a series of crackdowns by Beijing on its technology and education industries.

This has led to around $770bn (£556bn) being wiped off the value of US-listed Chinese stocks in the last five months alone.

The latest blow came as Beijing unveiled a massive overhaul of China's $120bn private tutoring sector, under which all institutions offering tuition on school curricula will be registered as non-profit organisations.

The new rules also said: "Curriculum subject-tutoring institutions are not allowed to go public for financing; listed companies should not invest in the institutions, and foreign capital is barred from such institutions."

That pushed down the stock market value of private education firms in the US, Hong Kong and mainland China, BBC reported.

Chinese authorities are also cracking down on a wide range of online services from food delivery apps to music streaming platforms.