(Bloomberg) — Chinese stocks in the crosshairs of Beijing’s regulatory crackdown extended their sharp sell-off to a third day Tuesday.
Technology and education stocks fell again, while real estate stocks also fell. Tencent Holdings Ltd. dropped as much as 5% after the company’s music arm gave up its exclusive streaming rights and was fined. Meituan fell as much as 8% after Monday’s record 14% drop.
Read more: China’s crackdown is rocking investors, with losses in Chinese technology and education stocks exceeding $1 trillion since February.
The Hang Seng Tech Index fell as much as 3%, bringing the three-day loss to more than 12%. The broader Hang Seng index also retreated.
A crackdown by Chinese regulators against some of the economy’s most vibrant sectors, including education and technology, has shocked investors this month. Shares plunged into “panic selling” Monday after regulators released reforms on Saturday that will fundamentally change the business model of private companies that teach the school curriculum.
Hong Kong’s major retail brokers cut margin funding for battered Chinese education stocks as investors suffered significant losses.
Sentiment towards real estate stocks was hit when China Evergrande Group surprisingly decided not to issue a special dividend after investors were shocked by news that banks and rating companies are wary of the debt-laden developer. The stock fell as much as 11.5%.
The Nasdaq Golden Dragon China Index – which tracks 98 of the largest Chinese companies in the US – fell 7% on Monday.
(Adds details about Evergrande)
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