In late July, China’s main equity index, the Shanghai composite, fell by around 7 percent in the space of three days. The equity market declines followed news that Beijing demanded that private tutoring companies can no longer be profit driven. Share prices for education companies collapsed and fell by over 80 per cent in some cases. Literally overnight, this large sector of the economy was wiped out – which by some estimates was worth around $120 billion annually. The losses were not confined to the equity market. The yuan also weakened, amid reports of foreign investors repatriating investments – which…

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