Part 5/13:
Importantly, officials have emphasized that these regulatory measures are likely the exception rather than the norm. When markets faltered because of these restrictions, the China Securities Regulatory Commission (CSRC) convened meetings with banking regulators, clarifying that targeted education policies are not intended to negatively affect other sectors. Despite this reassurance, the market reacted negatively; Chinese stocks experienced a three-day rout, with billions of dollars wiped off valuations, reflecting investor skepticism about policy stability and clarity.