Tencent is one of many Chinese companies listed in the United States, Hong Kong and mainland China whose shares have fallen sharply this year as a result of the tightened grip of the Chinese state.
In China shares of the two largest gaming companies have fallen after the country’s state media called their products “electronic drugs”.
Shares of Tencent and Netease fell more than 10 percent on the Hong Kong stock exchange, but later returned closer to their previous levels. The matter is reported by, among others, the British Broadcasting Corporation BBC and the news agency Reuters.
An article published by the state-affiliated Economic Information Day found that many teenagers are addicted to online gambling, which in turn has a negative impact on young people. That news agency is considered to be affiliated with the official Chinese state news agency Xinhua.
The article referred to Tencent’s hugely popular game called Honor of Kings and at the same time asked the company to take action to curb gaming.
“No industry or sport should be allowed to develop in a way that destroys a generation,” the article said.
Read more: Biggest Loser of the Month – Tencent Worth EUR 143 Billion in July for China’s Tightened Grip on Large Technology Companies
Tencent has now announced that it will introduce new measures to reduce children’s access to Honor of Kings and the time spent playing it. According to the company, it plans to expand the practice later to all of its games.
Investors have been increasingly concerned recently that the Chinese state is trying to tighten its grip on companies. Indeed, the country’s authorities have recently announced a number of measures aimed at tightening the state’s grip on, among other things, technology companies.
Tencent is one of many Chinese companies listed in the United States, Hong Kong and mainland China whose shares have fallen sharply this year. It is precisely the Chinese government’s tightening grip on the country’s major technology companies that has led to a sharp decline in their share prices and market values.