YMM - Why Chinese Stocks Were Tumbling en Masse Today
Chinese stocks were diving today, once again on fears of a regulatory crackdown by the Chinese government. This time the focus was on Chinese education stocks as a number of news outlets reported that officials may ask Chinese tutoring companies like TAL Education Group and New Oriental Education Group to become nonprofits, a move that would have obvious consequences for investors. Those two stocks and other Chinese education stocks lost more than half of their value today.
The fallout hit Chinese stocks broadly and came as fears have been mounting over intervention from the Chinese Communist Party. Those include Beijing's slapping restrictions on ridesharing giant recent IPO Didi Global earlier this month and fining Alibaba Group Holding $2.8 billion in April over antitrust violations.
Among the losers today were GDS Holdings (NASDAQ: GDS) , which was down 12.8% as of 12:30 p.m. EDT; Full Truck Alliance (NYSE: YMM) , which was off 24.6%; KE Holdings (NYSE: BEKE) , which had lost 18.8%; JD.com (NASDAQ: JD) , which had given up 5.8%, and Bilibili (NASDAQ: BILI) , which was down 14.5%.
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Why Chinese Stocks Were Tumbling en Masse Today