Shares of Chinese tech giant Tencent have fallen sharply after an article in state media described the online game as a “mental opium”.
In light of that situation, Tencent has announced that it will restrict minors’ access to its flagship video game.
|Tencent collapsed as Chinese media called online games “opium”|
Before that, the sheet Economic Information Daily China’s government said that Tencent’s online game “Honour of Kings” was addictive for minors and called on the authorities to take further measures to limit the industry.
China’s largest video game and social media company saw its shares plunge more than 10% in early trading, losing nearly $60 billion in market capitalization.
The CSI300 index of Shanghai- and Shenzhen-listed stocks fell more than 5%, its biggest monthly drop since October 2018.
The assault on the video game sector has put investors in a difficult position.
“Under these circumstances, it is expected that gaming stocks and even tech stocks in general will still face corrective pressure,” said Everbright analyst Kenny Ng, Sun Hung Kai. continuity”.
Regarding Tencent’s “Honour of Kings” game, the Economic Information Daily Given that this is the most popular online game among students, young people spend 8 hours a day playing this game.
The newspaper added: “No industry, no sport can be allowed to develop in the direction of destroying an entire generation”, and likened online video games to “drugs”. electronic”.
Tencent in a statement said it will put in place measures to reduce the access and time spent on games by minors. And also called on the industry to ban children under 12 from playing the game.
This article also caused the shares of other related companies to plummet. Of which, game developer XD Inc fell 8.2% and mobile game company GMGE Technology Group Ltd fell 15.6%.
The Chinese government has vowed to strengthen regulations related to online games and education to protect children’s health. Last month, it banned private tutoring, a move aimed at attacking China’s $120 billion private tutoring sector.
In addition, Chinese regulators have also ordered Tencent to be banned from exclusive agreements on music copyright and fined for unfair competition in the market.
Tencent did not mention the article in its statement, nor did it respond to .’s request for comment Reuters.
Phan Van Hoa(according to Reuters)
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