Tencent and NetEase shares fall more than 3% after China tightens gaming rules for kids

fell on Tuesday after regulators dramatically cut down the amount of time children were allowed to play games.Tencent shares were down around 3.2% in morning trade while NetEase's Hong Kong-listed stock fell 3.5%.

On Monday, China's National Press and Publication Administration said children below 18 years old will only be allowed to play online gamesThe ruling significantly reduced game time for minors who, under 2019 rules, were allowed to play for up to 90 minutes a day for most parts of the day. Gaming is the largest source of revenue for NetEase and Tencent. But analysts don't expect a huge impact on the companies as a result of the new rules.

Tencent has previously said only a small amount of gaming revenue comes from younger players in China. "We estimate about 5% of gaming revenue comes from minors under 18 years old, and we believe there is about 3% earnings impact to Tencent if we assume gaming contributes about 60% of total earnings," investment bank Jefferies said in a note published on Monday.

“Over 3%”🙀

horrible

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China Limits Videogames to Three Hours a Week for Young PeopleThe new regulation bans minors from playing videogames between Monday and Thursday and allows an hour of play on Fridays, weekends and holidays, as Chinese authorities seek to curb gaming addiction. Non sense Mask mandates are upstream of this kind of stuff. Slippery slope if you know what I mean…give the bureaucrats an inch and they’ll keep on taking. “But video gaming is dangerous to your health therefore we have to protect you by instituting this law” Big Momma and Poppa!
Source: WSJ - 🏆 98. / 63 Read more »