Shares of Chinese companies listed on the US stock market fell the most since 2008 as the Chinese government tightened surveillance over its tech giants.
The Nasdaq Golden Dragon China Index has fallen 15 percent in the past two days. It lists 98 large Chinese companies. After the financial crisis of 2008, the shares of Chinese companies are now in such a big crisis.
The index has fallen 45 percent since February. The decline began as Beijing continued to tighten controls on its technology and education industries. In the last five months alone, Chinese companies listed in the United States have lost ॠ770 billion.
The crisis in the stock market has deepened recently with Beijing tightening its grip on China's private educational institutions. China has introduced a provision that all private educational institutions in the country should be registered as NGOs.
According to the new rules, foreign investment in such educational institutions is prohibited and they will not even be allowed to issue shares.
Such a rule would reduce the market value of private educational institutions in the United States, Hong Kong, and mainland China.
Chinese authorities are preparing to crack down on online food delivery apps as well as music streaming platforms.
Shares of Meitwan, China's largest food delivery app, fell a record 17.6 percent in Hudkong's stock market.
The shares of Tencent also fell 9 percent. The company's share price has plummeted since the government ordered Tencent to end a music licensing deal.
