The crash in tutoring stocks that began on Friday spread this week across the tech sector and beyond, after authorities confirmed reports they would ban a swathe of the education industry from making profits. It’s the government’s most extreme step yet to rein in private businesses that regulators blame for exacerbating inequality, increasing financial risk and in the case of some tech titans –- challenging Beijing’s authority.With losses in Chinese tech and education stocks now exceeding $1 trillion since February, the questions reverberating across trading desks from Shanghai to New York are where regulators might strike next and whether markets are properly discounting regulatory risk. Property-management and food-delivery companies were among the biggest losers on Monday after Beijing signaled tighter rules for both sectors.
The Straits Times
China crackdown rocks investors: Everybody s in the crosshairs
It s a reminder for global investors of the importance of tracking the Chinese government s shifting priorities.PHOTO: REUTERS
Updated2 hours ago
https://str.sg/33F2
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