The biggest slump in US stocks since the 2008 financial crisis is seen in China

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The shares of Chinese companies listed in the US have seen their biggest fall for two days since the financial crisis in 2008.

financial crisis
Some of the biggest Chinese firms listed in the US have seen their value slump this year.

The Nasdaq Golden Dragon China Index, which follows 98 major US Chinese stocks, fell by almost 15% in the last two trading periods.

The index is now down more than 45% since hitting the record high in February.

The decline comes in the wake of a series of beats over Beijing in its technology and education industries.

This has led to the cancellation of approximately $ 770bn (£ 556bn) of the number of Chinese shares listed in the US in the last five months alone.

The latest incident came as Beijing launched a major reform of the $ 120bn private education sector, in which all school curricula will be registered as a non-profit organization.

The new rules also stated: “Academic institutions are not allowed to disclose funding; listed companies must not invest in institutions, and foreign exchange is restricted to these institutions.”

That has reduced the market share price of private firms in the US, Hong Kong and mainland China.
Chinese authorities are also battling various online resources from food delivery applications to music streaming platforms.

On Monday, China’s State Administration for Market Regulation (SAMR) issued new rules aimed at improving the employment conditions of service delivery workers.

SAMR wants workers who need it to be paid at least a minimum wage, reduce their workload, and be given better training.

Meituan, which operates one of China’s largest food delivery programs, saw its shares lose more than 10% of its value on Tuesday’s trade in Hong Kong, more than a 14% slide in the previous day.

Tencent shares fell by another 7.5% on Tuesday in Hong Kong after China ordered the tech giant to terminate special music licensing deals with major labels worldwide.

Officials said the move was aimed at addressing the issue of corporate governance in online music streaming.

Earlier this year, China’s largest trading company Alibaba accepted a $ 2.8bn fine after an official investigation found that it had been abusing its market position for years.

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