There's a documentary on Netflix called The China Hustle about people in the west setting up western extensions of Chinese companies. The Chinese companies are claimed to be big and successful, but they're often much smaller.PerBeijing’s sweeping crackdowns of its technology and education sectorshas unleashed shockwaves across global markets, causing U.S.-listedChinese stocks to post their biggest back-to-back losses in over adecade.The Nasdaq Golden Dragon China Index plunged as much as 6.9% Monday after regulators in China unveiled an overhaul of its education sector that bans firms that teach school subjects from making profits, raising capital or going public. The gauge -- whichtracks 98 of China’s biggest firms listed in the U.S. -- is on pace forits biggest two-day drop since 2008 and has lost more than $765 billionin value since reaching a record high in February.“The regulatory uncertainty is significant and is something that isimpossible for investors to quantify,” said Michael O’Rourke, chiefmarket strategist at JonesTrading. “Investors should be cautious untilthe Chinese government affirms the legality of these structures,” headded.Some large investors have already started to unload their shares. CathieWood’s flagship Ark Innovation ETF cut its holdings of China stocks toless than 0.5% this month from a high of 8% in February. The fundcompletely exited its position in tech-giant Baidu Inc. and has just 134shares of Tencent Holdings Ltd. Its only other position, Chineseproperty site KE Holdings Inc., has dropped 58% so far this year.They’re not alone either. In total, more than $126 billion in market capitalization has been erased from Chinese education stocks traded in the U.S., China and Hong Kong this year.“The latest events arguably highlight that the authorities are more willingto upset investors in pursuit of their broader political goals now thanthey were a few years ago,” wrote Oliver Jones, senior markets economistat Capital Economics in a note to clients.