in

China brands online games as ‘electronic drugs’

BERTHA WANG

Shares in two of China’s biggest online gaming firms have slipped after a state media outlet called them “electronic drugs”.

Tencent and NetEase shares fell more than 10% in early Hong Kong trade before regaining some of those losses. Investors are increasingly concerned about Beijing cracking down on firms.

In recent months authorities have announced a series of measures to tighten their grip on technology and private education companies.

An article published by the state-run Economic Information Daily said many teenagers had become addicted to online gaming and it was having a negative impact on them. The news outlet is affiliated with the official Xinhua news agency.

The article cited Tencent’s hugely popular game Honor of Kings, saying students were playing it for up to eight hours a day, and asked for more curbs on the industry.

“No industry, no sport, can be allowed to develop in a way that will destroy a generation,” it said before going on to liken online games to “spiritual opium”.

Tencent has said it would introduce measures to reduce children’s access to and time spent on its Honor of Kings game. The company also said it plans to eventually roll out the policy to all of its games.`

The recovery in share prices came as Economic Information Daily deleted the article from its account on the Wechat social media platform.

Tencent also saw its shares fall last week after being ordered to end exclusive music licensing deals with record labels around the world.

The move was aimed at tackling the technology giant’s dominance of online music streaming in the country – it currently controls more than 80% of China’s exclusive music streaming rights after an acquisition in 2016.

Tencent is only one of a number of Chinese companies listed in the US, Hong Kong and mainland China to see shares fall sharply this year as Beijing clamps down on the country’s technology and education industries.

What do you think?

Written by admin1

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

Twitter’s India Rival, Koo, Woos Nigerians By Putting Buhari On Advert

Microblogging social media platform called ‘Koo’ expands its visibility in Nigeria