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