Hong Kong stock index wipes out all of 2021 gains amid Chinese regulatory clampdowns

Shares in Hong Kong continued to remain under pressure for the third consecutive day on July 27 as concerns over government regulations battered stocks in the education, property and tech sectors.

At the time of writing this copy, the Hang Seng index in Hong Kong was down 1.33 percent, after falling 4.13 percent and 1.45 percent in the previous two sessions. The searing sell-off has wiped out all of the index's 2021 gains, and then some, as it is down over 4 percent on a year-to-date basis.

The broader Asia-Pacific markets were also largely lower, with mainland Chinese stocks also falling.

On Saturday, Chinese regulators published reforms that ban firms teaching school curriculums from making profits, raising capital or going public, citing that the sector has been "hijacked by capital".

The panic selling in education stocks spilled over to other sectors, with technology, healthcare and real estate stocks also falling.

Also weighing on the sentiment was the acrimonious start to the US-China summit, as the latter accused the US of treating it as an "imaginary enemy" and said relations were mired in a dangerous "deadlock".