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published photo, Reuters
Some of the major Chinese companies listed on the US stock exchange see their value drop this year
Chinese stocks listed in the United States saw their biggest drop in two days since the 2008 global financial crisis.
The Nasdaq “Golden Graecon China” index, which tracks the performance of the shares of the 98 largest Chinese companies listed on the US financial markets, has fallen about 15% in the past two trading sessions.
The index is now down more than 45% since it hit a record high last February.
The recession follows a series of stringent security measures taken by Beijing authorities in the tech and education sectors.
This has resulted in an estimated $ 770 billion (£ 556 billion) drop in the value of Chinese stocks listed on the US markets in the past five months alone.
The latest blow came when Beijing unveiled an in-depth review of its $ 120 billion tutoring industry, under which all institutions that offer tutoring to supplement the program will be registered as nonprofits. .
The new rules stipulated that: “Institutions concerned with teaching private programs are not allowed to obtain funding from public institutions, listed companies should therefore not invest in these institutions, and foreign capital is not allowed. to invest in these establishments ”.
This has led to a decline in the market value of private education companies in the United States, Hong Kong and mainland China.
Chinese authorities are also taking strict security measures against a wide range of internet services, from food delivery apps to online music streaming platforms.
On Monday, China’s State Administration of Market Regulatory Authority (SAMR) released new rules aimed at improving working conditions for home delivery people.
China’s state administrative authority has called for providing delivery workers a minimum wage, reducing the workload and providing them with better training.
Chinese shopping platform Mituan, which operates one of the largest delivery applications in China, lost more than 10% of its market value on Tuesday in its business operations in Hong Kong, compared to a 14% drop recorded the day before.
Shares of holding company Tencent fell 7.5% on Tuesday in Hong Kong after China ordered the tech giant to end exclusive deals related to music licensing activities with the world’s major record companies whole.
Regulators said the move was aimed at fighting the company’s control over online music business in the country.
Earlier this year, Chinese tech giant e-commerce company Alibaba accepted a record fine of $ 2.8 billion after an official investigation found the company had abused its market position. for years.
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