China’s top tech stocks suffered a third day of heavy sales as the country tries to prevent its technology, real estate and private education companies from becoming too dominant.<\/p>\n\n\n\n
China’s stock market posted outflows of $600 million on Tuesday, in part because of a $100 billion crackdown on private tutoring providers, which lost more than 45% of their shares. The country’s blue-chip index fell to its lowest level in nearly eight months, with the yuan at its lowest level since April.<\/p>\n\n\n\n
China\u2019s rise in global indexes in recent decades means money managers are more exposed than ever.<\/p>\n\n\n\n
Other falls on Tuesday saw delivery platform Meituan drop 17 percent, e-commerce company Alibaba with a decline of almost 8% and internet giant Tencent with a decline of 9%.<\/p>\n\n\n\n
William Russell, head of product specialist Equity at Allianz Global Investors, said the latest move from China had left investors blindsided.<\/p>\n\n\n\n
Arnim Holzer, a strategist at EAB Investment Group, advised clients to hedge their portfolios against further China-related volatility in various ways, including options positions that ensure they benefit from volatility in emerging market bonds.<\/p>\n\n\n