Home » TECH AND INTERNET » Tencent vows fresh gaming curbs after ‘spiritual opium’ attack zaps $60 billion

Tencent vows fresh gaming curbs after ‘spiritual opium’ attack zaps $60 billion

FILE Picture: A Tencent brand is noticed at its booth at the 2020 China Worldwide Reasonable for Trade in Expert services (CIFTIS) in Beijing, China September 4, 2020. REUTERS/Tingshu Wang/File Photograph

August 3, 2021

By Brenda Goh and Samuel Shen

SHANGHAI (Reuters) -China’s Tencent Holdings Ltd explained on Tuesday it would additional control minors’ access to its flagship video clip video game, hours right after its shares have been battered by a point out media posting that explained on the internet online games as “spiritual opium”.

Economic Information and facts Daily cited Tencent’s “Honor of Kings” in an short article in which it mentioned minors were addicted to on-line video games and called for more curbs on the business. The outlet is affiliated with China’s largest state operate news company, Xinhua.

The broadside re-ignited investor fears about point out intervention in China following Beijing had currently focused the property, training and engineering sectors to curb price tag pressures and reassert the primacy of socialism following decades of runaway sector advancement.

“They really do not believe something is off restrict and will react, from time to time overreact, to everything on condition media that suits the tech crackdown narrative,” Ether Yin, husband or wife at Trivium, a Beijing-based mostly consultancy.

China’s biggest social media and video video game business saw its inventory tumble much more than 10% in early trade, wiping nearly $60 billion from its market place capitalisation.

The inventory was on track to tumble the most in a decade prior to trimming losses immediately after the write-up vanished from the outlet’s internet site and WeChat account on Tuesday afternoon. The short article afterwards reappeared later on in the working day with the traditionally loaded term “spiritual opium” taken out and other sections edited. The CSI300 index last 7 days fell additional than 5% for its largest monthly loss considering that October 2018.

In the first report, the newspaper experienced singled out “Honor of Kings” as the most common on the internet match among learners who, it said, performed for up to eight several hours a working day.

“‘Spiritual opium’ has developed into an sector worth hundreds of billions,” the newspaper reported.

“….No industry, no sport, can be allowed to acquire in a way that will damage a technology.”

Opium is a sensitive topic in China which ceded Hong Kong island to Britain “in perpetuity” in 1842 at the close of the 1st Opium War, fought about Britain’s export of the drug to China exactly where addiction grew to become common.

Tencent in a assertion stated it will introduce a lot more actions to cut down minors’ time and income put in on game titles, starting off with “Honor of Kings”. It also named for an industry ban on gaming for youngsters below 12 yrs aged.

The company did not handle the article in its statement, nor did it reply to a Reuters request for comment.

The short article also hit rivals’ shares. NetEase Inc dropped extra than 15% prior to paring losses to sit around 8% lower in late afternoon trade. Sport developer XD Inc fell 8.2% and mobile gaming enterprise GMGE Know-how Group Ltd dropped 15.6%.

Exterior of gaming, buyers were being also caught off guard by the Point out Administration For Market place Regulation (SAMR) on Tuesday indicating it would look into car chip distributors and punish any hoarding, collusion and price-gouging. The semiconductor stock index subsequently fell a lot more than 6%.

Boy or girl WELLBEING

The reposted Financial Information and facts Day by day report, in a shift of tone, mentioned that authorities, activity developers and family members experienced to operate collectively to combat child addiction to on line video game titles, and mother and father experienced to be responsible for supervision.

Chinese regulators have since 2017 sought to restrict the total of time minors invest taking part in video game titles and corporations including Tencent already have anti-addiction units that they say cap young users’ match time.

But authorities have in latest months positioned clean concentrate on protecting youngster wellbeing, and said they want to more bolster regulations all-around on the internet gaming and education. Very last thirty day period, they banned for-financial gain tutoring in core college topics, attacking China’s $120 billion non-public tutoring sector.

That additional to other regulatory motion in the technology industry, which includes a ban on Tencent from unique audio copyright agreements and a fantastic for unfair sector procedures.

At just one level on Tuesday, Tencent was briefly de-throned as Asia’s most-beneficial business by sector capitalisation by chipmaker Taiwan Semiconductor Manufacturing Co Ltd.

(Reporting by Samuel Shen and Brenda Goh Supplemental reporting by Yingzhi Yang in Beijing, Tom Westbrook in Singapore, Andrew Galbraith and Josh Horwitz in Shanghai Enhancing by Vidya Ranganathan, Christopher Cushing and Nick Macfie)

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