Share Prices of Tencent and NetEase Experience a Loss
As per the latest reports, the share prices of NetEase have experienced a drop. Data shows that the drop in the share prices for NetEase was observed for Tuesday, August 31, 2021 trading. This happened mainly because the Chinese regulatory authorities have taken an interest in limiting the amount of game time for kids.
According to updates from the Chinese gaming market, the Chinese regulatory authority has made an announcement in regards to game time for kids. The regulator has reportedly cut down on the amount of time the kids are allowed to play video games.
NetEase is currently the second-largest company in China that belongs to the gaming sector. Since the announcement made by NetEase, the share prices for the company have experienced a downtrend.
The data from the stock market trends show that the stock prices for NetEase were down by 2.9% on Tuesday trading. These stats were shared directly by the Hong Kong Stock Exchange where the company is listed.
Similarly, the largest gaming company in China, Tencent, has experienced an even worse drop in its share prices. The data reveals that since the announcement and implementation from the regulators, the share prices of Tencent have experienced over a 3% drop.
However, towards the end of the trading day, the share prices for Tencent managed to recover their price and ended the day with positive figures.
According to the analysts, the latest directive issued by the regulatory authority of China over the game time of kids would not have much impact on gaming company giants. The analysts have exemplified the share price drop and rise demonstrated by Tencent for the Tuesday, August 31, trading.
The analysts have predicted that even if the share prices for the companies experience a drop, they would soon reverse. The new directive is not going to have much impact on the share prices of the companies as they will soon recover from that.
It was on Monday, August 30, 2021, an intimation was released by the National Press and Publication Administration of China. In the intimation notice, it was announced that children below the age of 18 will be allowed to play games with a restricted time limit.
It was announced that the children below the said age would be allowed to play games only for three hours per week. The notice even instructed the parents around the timings during which the kids would be allowed to play games.
This is not the first time a gaming rule has been introduced for children below the age of 18. Back in 2019, a rule was passed that allowed children below the age of 18 to play games online for 90 minutes per day. This limit has now been reduced tremendously by the regulators in the latest announcement.