US public health agency recommends mask-wearing in indoor public spaces in places where the coronavirus is surging.
The slump in U.S.-listed Chinese shares accelerated Tuesday, wrapping up another day of losses, as investors shunned the assets amid a broad-based crackdown by regulators in Beijing.
In the span of three trading days, the Nasdaq Golden Dragon China Index – which tracks 98 of China’s biggest firms listed in the U.S. – has plunged about 20%, its biggest such drop on record. Stocks included in the index have seen $840 billion, or nearly half their collective value, erased since hitting a record high in February.
The gauge was already under pressure after China unveiled sweeping policy changes to the technology sector but the rout deepened as regulators pivoted to also target other industries like online education and property management.
“We do not see a buy-the-dip opportunity. China’s recent regulatory crackdowns are the beginning, not the end, of increased control and command by Chinese leaders,” said David Trainer, chief executive officer of New Constructs, an investment research firm, based in Nashville.
Markets across China slumped on Tuesday as rumors circulated that U.S. funds were dumping Chinese and Hong Kong assets, with analysts warning that gains may be short-lived. Tech-giants including Alibaba Group Holding Ltd., JD.com Inc., NIO Inc. and Baidu Inc. were among the biggest decliners in New York, all slumping by at least 3%.
Still, shares of education stocks like TAL Education Group, Gaotu Techedu Inc. and New Oriental Education & Technology Group managed to stage a rebound on Tuesday. All three gained by at least 10%, though they remain lower by an average of 92% on the year. Other companies, including Meten EdtechX Education Group Ltd. and 17 Education & Technology Group Inc. were also higher as of 2:12 p.m. in New York.
Despite the rebound in some education firms, not everyone’s convinced the selling pressure has abated. “I think it’s kinda of a dead cat bounce,” said Matt Maley, chief market strategist for Miller Tabak + Co. “It’s way too early to be catching the falling knife,” he added.