US-listed Chinese stocks experienced their biggest drop in two days since the 2008 global financial crisis.
The Nasdaq "Golden Graecon China" index, which tracks the performance of the shares of the 98 largest Chinese companies listed on the US financial markets, fell by about 15 percent in the last two trading sessions.
The index is now down more than 45 percent since hitting a record high last February.
The recession comes on the heels of a series of tough security measures taken by the Beijing authorities in the technology and education industries.
This has led to a drop of about $770 billion (£556 billion) in the value of Chinese shares listed on US markets over the past five months alone.
The latest blow came as Beijing unveiled a sweeping examination of its $120 billion tutoring sector, under which all institutions that provide tutoring to complement the curriculum will be registered as non-profit organizations.
The new rules stipulated that: “Institutions concerned with teaching private curricula are not allowed to obtain funding from public institutions; therefore, listed companies should not invest in these institutions, and foreign capital is not allowed to invest in such institutions. ".
This situation led to a decline in the stock market value of private education companies in the United States, Hong Kong and mainland China.
Chinese authorities are also taking strict security measures against a wide range of internet services ranging from food delivery apps to online music streaming platforms.
On Monday, China's State Administration of Market Regulatory Authority (SAMR) issued new rules aimed at improving the working conditions of home delivery workers.
The Chinese State Administration Authority called for providing minimum wages for delivery workers, reducing workloads, and providing them with better training.
Chinese shopping platform Mituan, which operates one of the largest delivery apps in China, lost more than 10 percent of its market value Tuesday in trading activities in Hong Kong, compared with a 14 percent decline recorded the day before.
Shares in holding company Tencent fell 7.5 percent Tuesday in Hong Kong after China ordered the technology giant to end exclusive deals related to licensing music activities with major record labels around the world.
The regulators said the move was aimed at addressing the company's control over online music activities in the country.
Earlier this year, the Chinese tech giant, e-commerce company Alibaba, accepted a record fine of $2.8 billion after an official investigation concluded that the company had abused its market position for years.
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