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Tencent shares fall as Chinese state media brand online games ‘spiritual opium’

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Shares of Tencent and other Chinese video game companies have fallen more than 10 percent on the recent Broadside from Beijing to the country’s tech group after state media accused online games of “spiritual opium.”

Online video games have grown into “hundreds of billions of worthy spiritual opiums,” and one expert warned that “there is no industry,” according to an article in the economic news daily published by the state news agency Xinhua. .. .. .. It can develop in a way that destroys generations. “

The downturn is that Chinese tech stocks are their Worst month Since the unprecedented after-July global financial crisis Regulatory campaign For technology sectors such as education, ride hailing and social media.

The article didn’t mention Tencent by name, but complained about its widespread use Internet addiction Among young people in China. An unnamed student quoted that some of his classmates said they spent eight hours a day on the flagship of an internet group. Honor of Kings The game, and this “new type of electronic drug,” warned that it was “a breakthrough.”

Chinese video game maker Foreign opium merchant That trade sharply dropped some shares of the country’s largest tech group on Tuesday, which contributed to the collapse of Empire China.

Online Tencent Stock Game business It generated RMB 39.1 billion ($ 6 billion) in the first quarter, accounting for 30% of total revenue and down 10.1% in Hong Kong. Rivals NetEase and XD fell by about 13% and 14%, respectively. According to research firm and consultancy Nico Partners, the Chinese video game market was worth $ 43.1 billion in 2020.

A new attack by state media on a Chinese technology group has squeezed shares in Shanghai and Shenzhen.These had Stable Recently, after a conference call by Chinese securities regulators I tried to reassure Global and domestic financial groups over Beijing’s relentless crackdown on the sector.

Beijing is looking for something new in the last few weeks Overseas listing systemImposing data security reviews on companies trying to sell shares abroad, outlawing $ 100 billion in the country Tutor industry From making a profit. According to JPMorgan analysts, this has made the three largest companies in the sector “virtually incapable of investing.”

A state media article controls the country’s ubiquitous WeChat social networking and payment apps and presents a new challenge to Tencent, which until recently was under regulatory attack. Relatively intact..

It suddenly changed when the company announced it last week Stop all user registration WeChat has upgraded its security technology to “comply with all relevant laws and regulations.” Tencent’s share price has fallen by more than a quarter in the past month.

New Oriental Education, a leading Chinese tutoring company, has also canceled its fourth quarter earnings announcement in the face of strict regulations in the education industry.

Like almost every Chinese company listed in the United States, New Oriental Foreign private issuer, Provides a looser disclosure system compared to domestic companies.

These Chinese companies technically do not need to disclose their quarterly revenues, they only need to issue an annual report.

Additional report by Ryan McMorrow of Beijing

Tencent shares fall as Chinese state media brand online games ‘spiritual opium’ Source link Tencent shares fall as Chinese state media brand online games ‘spiritual opium’

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