China stock rout spreads amid fears of foreign investor exodus

Investors in some of China's most vibrant sectors -- from technology to education -- have found themselves in the firing line this month

A rout in Chinese shares in the crosshairs of Beijing’s regulatory crackdown extended into the bond and currency markets Tuesday as unverified rumors swirled that US funds are offloading China and Hong Kong assets.

The speculation, which included talk that the US may restrict investments in China and Hong Kong, circulated among traders in late afternoon in Asia, spurring a renewed bout of selling. The Hang Seng Tech Index, a gauge of many Hong Kong-listed Chinese stocks, plunged as much as 10%, while the yuan slid to its weakest since April against the dollar and even Chinese bonds were dumped.

The drastic