Global investors sold $2 billion of Chinese stocks on Monday as Beijing’s crackdown on education companies raised fears of more regulatory tightening across the world’s second-biggest economy, reported the Financial Times.
Investors offloaded RMB12.8 billion ($2 billion) worth of Shanghai and Shenzhen-listed shares through market link-ups in Hong Kong, marking the fastest pace of foreign selling in a year.
The market tumult was sparked by a move by Beijing over the weekend to ban academic tuition groups from making profits, raising capital or going public. News of the measures, which were unveiled via a leaked memo and were later confirmed, wiped about $16 billion from the value of three of the sector’s biggest companies on Friday.