Tencent shares fall after Chinese media criticize video games

Shares of Tencent Holdings and other prominent Chinese video game companies plunged in a Hong Kong deal on Tuesday after Beijing-affiliated media called their product a “spiritual opium.”

The explosion from the state-owned media Economic Information Daily happened months later. Increased pressure From Beijing, we aimed for a broader Chinese Internet industry that serves 1 billion users. That pressure has led global investors to withdraw billions of dollars from Chinese tech stocks, fearing that tightening regulations could undermine the company’s outlook.

The Economic Information Report article does not declare that a particular policy change will take place, and does it reflect the views of Beijing officials or simply the editors of the publication? Was unknown.

To further increase uncertainty, the link to the article died late Tuesday, but could be copied. Still found On the site of Xinhua News Agency, the official state news agency that manages economic information daily.

Despite the uncertainty, nervous investors quickly sold their stock.

Tencent, a technology conglomerate that has a strong presence in social media and entertainment in addition to video games, eased losses late Tuesday, declining by about 7%, but temporarily declining its share by about 10%. did. Another mainland video game company, NetEase, has confirmed that its share has dropped by nearly 9%.

The article’s headline, “The’spiritual opium’has grown into an industry worth hundreds of billions of dollars,” left little doubt about the thrust of this article. It quoted a series of threats posed by video games, including distracting attention from schools and families and causing myopia.

“We should not develop industry or sports at the expense of destroying generations,” he said.

In this article, we’ve picked out Tencent, which owns popular games in China like Honor of Kings and popular titles around the world like League of Legends.

Tencent On Tuesday, we released a statement on the WeChat social media network explaining some of the restrictions we recently decided to introduce, such as limiting the game time for minors and increasing efforts to find minors. .. Lie about their age play.

Scrutiny is nothing new to Tencent or the industry. According to the report, more than half of Chinese internet users play online games. Government statistics.. In the past, authorities were worried that games could hurt children’s scholars, Impair eyesight And reduce the country’s military readiness. In 2019, the authorities exclusive The time young people can spend playing games online.

Tencent shares fall after Chinese media criticize video games

Source link Tencent shares fall after Chinese media criticize video games

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