Shares of Chinese companies listed in the US have seen their biggest two-day fall since the 2008 financial crisis.
The Nasdaq Golden Dragon China Index, which follows the 98 biggest US-listed Chinese stocks, has fallen by almost 15% in the last two trading sessions.
The index has now plummeted by more than 45% since hitting a record high in February.
The slump comes after a series of crackdowns by Beijing on its technology and education industries.
This has led to around $770bn (£556bn) being wiped off the value of US-listed Chinese stocks in the last five months alone.
The latest blow came as Beijing unveiled a massive overhaul of China’s $120bn private tutoring sector, under which all institutions offering tuition on school curricula will be registered as non-profit organisations.
The new rules also said: “Curriculum subject-tutoring institutions are not allowed to go public for financing; listed companies should not invest in the institutions, and foreign capital is barred from such institutions.”
That pushed down the stock market value of private education firms in the US, Hong Kong and mainland China.
Chinese authorities are also cracking down on a wide range of online services from ride-hailing app Didi to Tencent’s music streaming platforms.
On Monday Tencent’s shares fell after China ordered the technology giant to end exclusive music licensing deals with major record labels around the world.
Regulators said the move was aimed at tackling the company’s dominance of online music streaming in the country.
Didi also saw its shares fall by more than 11% after a report that regulators in Beijing are considering serious penalties for the company. It was accused of illegally collected users’ personal data.
And earlier this year, Chinese e-commerce giant Alibaba accepted a record $2.8bn fine after an official investigation found that it had abused its market position for years.