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Tencent vows fresh gaming curbs after spiritual opium attack zaps $60B

BusinessWorld August 5, 2021 | 12:03 am Economic Information Daily cited Tencent’s Honor of Kings in an article in which it said minors were addicted to online games and called for more curbs on the industry. The outlet is affiliated with China’s biggest state-run news agency, Xinhua. The broadside re-ignited investor fears about state intervention after Beijing had already targeted the property, education and technology sectors to curb cost pressures and reassert the primacy of socialism after years of runaway market growth. “They don’t believe anything is off limit and will react, sometimes overreact, to anything on state media that fits the tech crackdown narrative,” said Ether Yin, partner at Trivium, a Beijing-based consultancy.

China warns gaming firms could lose tax breaks in latest threat

China warns gaming firms could lose tax breaks in latest threat
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Investors fear nothing s off limits after Chinese state media article targeting Tencent

REUTERS/Aly Song August 4, 2021 Bewildered investors in China’s tech sector scrambled once again from regulators on Tuesday, fearing that a state media story that likened internet gaming to opium signals a new front in the barrage of scrutiny that is being directed toward big business. The article was later altered to remove the historically loaded opium reference, but, together with the opening of a probe into automotive chip distributors, it roiled markets still smarting from a panic sell-down a week ago. Tencent, the social-media-to-gaming behemoth, fell 6% and was briefly knocked from its mantle as Asia’s most valuable company, while semiconductor stocks slid as the moves seemed to unwind authorities’ days-old promise of a calmer hand.

Tencent vows fresh gaming curbs after spiritual opium attack zaps $81b

August 04, 2021 published at 1:48 AMReuters Visitors are seen at the Tencent Games booth during the China Digital Entertainment Expo and Conference, also known as ChinaJoy, in Shanghai, China, on July 30, 2021. Reuters SHANGHAI - China s Tencent Holdings Ltd said on Tuesday (Aug 3) it would further curb minors access to its flagship video game, hours after its shares were battered by a state media article that described online games as spiritual opium . Economic Information Daily cited Tencent s Honor of Kings in an article in which it said minors were addicted to online games and called for more curbs on the industry. The outlet is affiliated with China s biggest state-run news agency, Xinhua.

Baffled investors fear nothing s off limits in China regulatory crackdown

August 04, 2021 published at 2:26 AMReuters The Tencent Games logo is seen on its game on a mobile phone in this illustration picture taken Aug 3, 2021. Reuters SHANGHAI/SINGAPORE, Aug 3 - Bewildered investors in China s tech sector scrambled once again from regulators on Tuesday (Aug 3), fearing that a state media story that likened internet gaming to opium signals a new front in the barrage of scrutiny that is being directed toward big business. The article was later altered to remove the historically loaded opium reference, but, together with the opening of a probe into automotive chip distributors, it roiled markets still smarting from a panic sell-down a week ago.

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