By Weizhen Tan, CNBC •
Updated on August 3, 2021 at 3:10 am
VCG | Visual China Group | Getty Images
Chinese tech and education stocks massively sold off last week after the country continued its crackdown on the tech sector, and stepped up restrictions on its education industry.
China's recent regulatory crackdown has been misinterpreted as being "anti-capitalist" by some Western investors, who will as a consequence "continue to miss out" on what's happening in the Asian country, says billionaire investor Ray Dalio.
The crackdown on the education sector is actually an attempt to reduce inequality in the country, as costs spiral in the huge tutoring and enrichment industry, say analysts.