Fresh Regulatory Worries for Tencent

A tighter "curfew" is imposed on Chinese youth. How will it impact Tencent’s gaming empire?

6 August, 2021 | 10:52AM
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Tencent

Regulatory concerns mount as China launches a series of crackdown on misconduct in the internet industry. First there was Alibaba (BABA), then DiDi Global (DIDI). Now, China is cracking the whip again, and this time, it’s Tencent.

Here’s what happened: On August 3, state-affiliated media in China said that playing online games is addictive and went so far as to call online games "spiritual opium". In an article, the Economic Information Daily was wary of impacts from pop culture, saying "no industry, no sport, can be allowed to develop in a way that will destroy a generation". Tencent’s blockbuster game Honour of Kings was singled out as an example for causing a detrimental impact to the country’s youth.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Alibaba Group Holding Ltd ADR168.00 USD0.73Rating
CMGE Technology Group Ltd3.12 HKD3.65Rating
DiDi Global Inc ADR8.26 USD-0.12
NetEase Inc ADR95.56 USD0.10Rating
Tencent Holdings Ltd ADR63.99 USD1.80Rating

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