Those fears were quelled on Tuesday after the Economic Information Daily – a business newspaper owned by the Xinhua News Agency, which is China’s official news outlet – published a lengthy analysis describing the harmful effects of gaming. Words like “opium” and “electronic drug” were used for this. on children.
“It turns out that ‘spiritual opium’ has grown into a billion-dollar industry,” the article read. Insiders warn: Beware of pitfalls of online games.
Tencent shares fell more than 10% in Hong Kong on Tuesday, but recovered some losses End the day down 6%.
“Minors (primary school students) under the age of 12 are prohibited from spending in sports,” the company said.
It also called for an industry-wide discussion on “the feasibility of banning primary school students under the age of 12”. playing games.”
Tencent alone lost more than $100 billion in market cap in 48 hours as investors worried about broader China crackdown. private sector.
As its shares plummeted, the Shenzhen-based company Temporarily suspended new user registration for its WeChat messaging platform. It said the move was related to the upgrade of its security systems, in accordance with “relevant laws and regulations”.
Tencent was also hit by a regulatory order last month to scrap its plans to acquire another music streaming player, China Music Corporation. Regulators cited competition concerns, noting that Tencent has long been leading the market.
In recent months, the Chinese tech giant has been caught in unprecedented action in areas ranging from ride-hailing to education. Analysts at Goldman Sachs said last week that since February, shares of foreign-listed Chinese tech firms have lost a whopping $1.2 trillion.
— Sasha Chua and Laura They contributed to this report.