Chinese tech stocks have been having a dreadful summer. The cause of the selling is clear: Beijing is making major power moves.
A month ago, China shocked investors by declaring that its for-profit education industry would no longer be allowed to operate. Education firms will need to transition to non-profit roles or shut down services entirely. Chinese education stocks have fallen 80% or more so far this year.
That’s not the only sector the bureaucrats are going after. The government has taken regulatory action against gaming, e-commerce, streaming media and tobacco firms among various others.
The crackdown on gaming has extended to younger players, with new rules for the under-18 population allowing only an hour a day, and…