SHANGHAI, Sept. 9 (Reuters) – Chinese gaming and media stocks, including Tencent Holdings (0700.HK) and NetEase (9999.HK), fell on Thursday a day after authorities called them and others gaming companies to make sure they were implementing new rules for the industry.
Tencent shares fell 4% in Asian trade. NetEase’s Hong Kong-listed shares fell 6.45% after a 5% drop in the company’s U.S. shares overnight. Shares in Hong Kong of Bilibili (9626.HK) lost more than 7%, also following an overnight drop in US shares of the video game and short video sharing company.
Last month, Beijing banned video games from under-18s for more than three hours a week.
Stricter gambling regulations come as China has carried out broader crackdown on a wide range of sectors, including technology, education and property, to strengthen government control after years of fugitive growth. .
Chinese government ministries on Wednesday told gaming companies to implement such measures, resist resistance to inappropriate competition, and focus on driving innovation, the official Xinhua news agency reported. Read more
Companies should also “resolutely curb wrong trends, such as focusing” only on money “and” only on traffic, “and change the rules and game designs that induce players to indulge,” regulators said. , according to Xinhua.
Tencent and NetEase said Thursday they would work to fully comply with regulators’ requests.
Separately Thursday, Chinese state media warned investors not to blindly buy Chinese stocks in hopes of taking advantage of the so-called Metaverse, saying they will likely end up crying. Read more
The comment from China’s official Securities Times appears amid a recent rise in stocks such as the Shenzhen Zhongqingbao Interaction Network (300052.SZ) and Perfect World (002624.SZ) which are perceived as the development of the Metaverse, a shared virtual space based on virtual reality (VR Technologies). Read more
Shares in related stocks fell after the comment was posted, with Wondershare Technology (300624.SZ) falling by more than 9% and Goertek (002241.SZ) by almost 6%.
The Ministry of Transport also said on Wednesday that it would intensify the crackdown on illegal behavior in the mobility industry and deal with online platforms that still use vehicles and drivers that do not meet the requirements.
Reports by Brenda Goh and Alun John; Edition by Ana Nicolaci da Costa
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