China's Tencent leads slide in online games stocks on renewed concern of scrutiny
16/08/2021 04:32
** Shares of China's Tencent 0700.HK lead slide in online
gaming stocks, falling 4.4% to HK$449.40, the biggest daily pct
drop since Aug. 3
** Stock on track for fourth straight session of decline;
most actively traded by turnover and fourth biggest pct decliner
on Hang Seng Index .HSI
** Chinese regulators should strengthen vetting of online
games and have "zero tolerance" toward those that distort
history, state broadcaster China National Radio (CNR) said in
commentary on its website urn:newsml:reuters.com:*:nL4N2PL02A
** The remarks - latest in a series of critical articles in
Chinese state media - are likely to exacerbate fears video game
industry will be next in line to face regulatory action from
domestic authorities
** NetEase's Hong Kong shares 9999.HK fall 4.4% to
HK$135.70, the biggest daily percentage decline since Aug. 3
** XD Inc 2400.HK plunges as much as 5.7%, and CMGE
Technology Group 0302.HK drops 5.1%
** Brokerage Daiwa says regulators' scrutiny likely to
persist but it reiterates "buy" rating on China internet stocks,
including Tencent and NetEase, saying industry growth on
innovations will drive long-term profitability providing upsides
in current valuation
** The Hong Kong Hang Seng sub-index tracking information
technology firms .HSCIIT falls 2.6%, and the Hang Seng Tech
Index .HSTECH is down 2.1%
** The Hang Seng China Enterprises Index .HSCE slips 0.7%
and the benchmark index .HSI eases 0.5%
(Reporting by Donny Kwok)
((donny.kwok@thomsonreuters.com))