Refinitiv Newscasts - China gaming curbs roil stocks, anger teens
31/08/2021 16:25
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_0m7f8ho5&referenceId=tag:reuters.com,2021:newsml_OVESM8LFV_930&pageId=RefinitivNewscasts Source: Reuters Description: China is to limit under-18s to three hours a week of online gaming, prompting a furious backlash from dedicated young gamers, and a stock-price tumble for Krafton and other major players in the market. Julian Satterthwaite reports. Short Link: https://refini.tv/3gOymEq Video Transcript: China may have united teenage gamers, and stock market investors. Both have reacted sharply to a move to limit online game time for the under 18s. Beijing announced the move on Monday, saying teens would only be allowed three hours per week. The move intended to strengthen controls over society, which leaders think has become too free and easy. Young gamers were furious. Some said the move would derail budding E-sports careers. One, calling himself "Mr. Zhou", said the move would anyway backfire. I don't think the new regulation makes any sense. Although it aims to help teenagers, the less you let them play, the more curious they'll be. Tuesday saw gaming stocks take a hit. There were falls for US-listed NetEase, Japan's Nexon, and South Korea's Krafton, maker of online hit "Player Unknown's Battlegrounds". Though Chinese giant Tencent ended the day over 3% higher, after analysts noted it had already introduced limits on gaming by minors. Investors say the worry for the industry isn't about an immediate hit to revenues. One told Reuters it's more about whether Beijing could stop approving new games, as it did for a while in 2018. Another said the curbs could mean fewer teens get the gaming habit, hitting revenues in the long term. Some Chinese parents might feel that would be no bad thing