Tencent Stock Down 10% After State Media 'Electronic Drugs' Jibe

By Lars James Hamer, August 3, 2021

0 0

Chinese gaming giant Tencent saw a dramatic 10% drop in shares on Tuesday after state-owned Economic Information Daily likened their products to “electronic drugs.”

Stock in Tencent’s rival Netease also plummeted by 15.7% on the day.

The article by state media said that many young teenagers had become addicted to games such as the immensely popular Honor of Kings, likening it to “spiritual opium.”

Economic Information Daily regularly referenced Honor of Kings in the article. 

The newspaper also added this strong remark: “No industry, no sport, can be allowed to develop in a way that will destroy a generation.”

On Weibo, popular tech blogger Keji Guaijie created a poll asking netizens whether Honor of Kings should be referred to as “spiritual opium.” With more than 7,700 respondents, 49% agreed with the nickname and 28% thought it was a bit far. The remaining respondents took a neutral position.

Tencent has been closely monitored as of late – last week the company was forced to end exclusive music licensing deals with record labels around the world.

Since China’s most recent census highlighted a significant decline in the country’s birth rate, Beijing has proposed restricting the technology and education industry to ease the financial burden of raising children. 

Sweeping changes and restrictions to the private tutoring education sector are expected to come after the government announced it would be banning for-profit tutoring of school subjects. 

[Cover image via @新商业联播/Weibo]

more news

Tim Hortons and Tencent Esports Open Shenzhen Collab Coffee Store

Tim Hortons has partnered up with Tencent to open a new type of social gaming space in Nanshan district.

Beijing Files Lawsuit Against Tencent to Protect Chinese Youth

Prosecutors claim that the 'youth mode' on super-app WeChat does not comply with laws protecting minors.

How to Turn Off WeChat's Personalized Ads

If you're like us, you may find these ads a bit creepy and would like to limit WeChat's ability to monitor your interests.

The Bizarre Story of a Chinese Gaming Tycoon's Inheritance

After the suspected poisoning of gaming tycoon Lin Qi, the inheritance of his fortune has been embroiled in a paternity scandal.

Macao Casino Gaming Revenue Rebounds as Visitors Increase

Gaming industry revenue in Macao tripled month-on-month in October, however, revenue was still down 73% year-on-year.

Popular Chili Sauce Maker Lao Gan Ma Sued Over Unpaid Tencent Ad Fees

The condiment giant which supposedly never spends money on advertising is being sued for failure to pay advertisement fees.

Tim Hortons Partners with Tencent for Huge Chinese Expansion

Currently most franchises are located in downtown Shanghai.

0 User Comments

In Case You Missed It…

We're on WeChat!

Scan our QR Code at right or follow us at thatsonline for events, guides, giveaways and much more!

7 Days in China With thatsmags.com

Weekly updates to your email inbox every Wednesday


Download previous issues

Never miss an issue of That's Magazines!

Visit the archives