Tencent's stock has taken a dip after a state-run news agency in China said video games are like "spiritual opium" or "electronic drugs." As reported by WSJ and Bloomberg, Tencent's stock fell about 11% after The Economic Information Daily ran an article blasting gaming in reference to a student who said he played Tencent's game Honor of Kings eight hours a day.
The Economic Information Daily is owned by Xinhua News Agency, a government-controlled news agency that is very influential in China. The article calling for stricter regulations on gaming in China may have caused investors to panic, resulting in the drop in stock price. The online version of the article was pulled, possibly due to the harsh comparisons.
"The word choice of spiritual opium is especially harsh, it would be surprising if the regulators won't do anything about this," Ke Yan, a Singapore-based analyst with DZT Research, told Bloomberg.
Continue Reading at GameSpotfrom GameSpot - All News https://ift.tt/3yj3SkC
0 Comments