PGJ - China wipeout continues as crackdowns prompt Hang Seng to plunge 5%

Billy H.C. Kwok/Getty Images News Sweeping crackdowns across China are continuing to send shockwaves across financial markets, with investors finding themselves in the firing line of some of the nation's hottest sectors. Shares of Tencent (TCEHY) fell 10% on Monday after Beijing ordered the company to give up exclusive music licensing rights, while education stocks like TAL Education (TAL), New Oriental (EDU) and Gaotu Techedu (GOTU) slumped about 25% each amid a ban on for-profit tutoring. In fact, the Nasdaq Golden Dragon China Index - which tracks 98 of China's largest firms listed in the U.S. - dropped 8.5% on Friday and another 7% on Monday, marking the biggest two-day selloff since '08. Overnight: Hang Seng -5.4%; Shanghai -2.5%. Analyst commentary: "Even when you think China risk is priced, it can get worse," Goldman Sachs wrote in a research note. "The government could come down much harsher than expected penalties for Tencent, they could implement much stricter social insurance programs

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China wipeout continues as crackdowns prompt Hang Seng to plunge 5%