A wave of sell-offs hit stocks on stock exchanges in China and Hong Kong. Investors are worried about tightening government regulations in major economic sectors.
At the beginning of the last week of July, the education sector was hit hardest by the sell-off. Shares of Scholar Education Group, traded in Hong Kong, fell more than 45 percent in Monday trading. Shares of New Oriental Education &Technology Group wrote off as much as 47 percent. Companies provide educational services mainly in China.
Investors are worried about the new regulations in the sector announced by the CHINESE government. China’s CSI Education Index lost nearly a tenth and the Shanghai Stock Exchange composite index fell by 2.34 percent. Similarly, the Shenzhen Stock Exchange Index fell. Both markets are the weakest since last December.
The Chinese government is also preparing regulations for the technology and real estate management sectors. Bad mood spilled over from China to Hong Kong. Its main stock index, the Hang Seng, lost 4.13 percent on Monday, also closing at its lowest level since December last year.