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China’s Tutoring Stocks Crushed by Renewed Panic Over Crackdown

This week’s rout in Chinese education stocks shows how quickly investors can turn on an industry if they suspect President Xi Jinping will intensify a crackdown. 

A Bloomberg Intelligence index of Chinese education firms has plunged 27% in the past three days, the steepest loss since the government announced a sweeping overhaul of the industry in July. The gauge is at its lowest level since 2015. China Education Group Holdings Ltd. sank 21% on Thursday, taking its decline this week to 54%.