China Stocks Tumble in ‘Panic Selling’ Amid Education Crackdown - Yahoo Finance
Stocks slumped on the mainland and in Hong Kong, with the benchmark CSI 300 Index dropping 3.2% and the Hang Seng Index tumbling 4.1%, the most since May last year.Steep losses in education stocks in the wake of a sweeping overhaul spilled over into other areas, with technology, health-care and property-related stocks falling.
Chinese regulators on Saturday published reforms that will fundamentally alter the business model of private firms teaching the school curriculum, as Beijing aims to overhaul a sector it says has been “hijacked by capital.†The new regulations ban firms that teach school curriculums from making profits, raising capital or going public.A campaign to cut leverage in the property industry has also weighed on builder shares, with a Hong Kong gauge of related firms falling to its lowest since February.
Property management stocks also tumbled after Beijing vowed closer scrutiny of the sector while health-care shares plummeted amid investor concerns about it being the target.
The Hang Seng China Enterprises Index, which include Hong Kong-listed mainland stocks, entered a bear market after falling 24% from a February peak.
Mainland investors have been net selling Hong Kong shares via exchange links in the city for a sixth straight day, the longest streak since May 2019, according to Bloomberg-compiled data