Why Chinese Tech Stocks Were Plunging Again Today
Shares of Chinese tech stocks were tumbling today for the second session in a row as fears of regulatory crackdown by the Chinese government continued to mount.
The sell-off centered around a new set of restrictions on Chinese for-profit tutoring companies such as New Oriental Education & Technology and TAL Education Group, who have now had most of their market value wiped out in two sessions. On Saturday, Beijing announced stringent regulations that mean that for-profit educators can no longer accept overseas investments, raise capital from through the stock market, be directly acquired, or even teach school curriculum classes on holidays and weekends.
Though the news did not have any direct consequences for Chinese tech companies, the announcement adds to a pile of concerns about investing in China due to an increasing crackdown on business by the ruling Communist Party.
Source Fool.com
