Gaming stocks drop after Beijing restrictions
Gaming stocks fell in China and Japan after Beijing reduced the amount of time children can spend playing online. China is the world’s largest gaming market.
The Hang Seng Tech Index plunged 1.5%, pulled down by shares of Bilibili Inc. and NetEase Inc., which also fell in Hong Kong after losses in their American depositary receipts.
Bilibili plummeted 7.2%, while NetEase took a 4.6% loss.
In Japan, Nexon Co. sank 5%, while Koei Tecmo Holdings Co. shed as much as 4.4%.
The surge of restrictions on gaming piled on top of the pain already experienced by investors in the region’s largest tech companies, who have also been affected by Beijing’s new regulations on everything from ride-hailing platforms to e-commerce to data security. The latest move had put a stop to a wave of bargain hunting, helping the sector salvage some of its losses.
The new state regulations will only allow gaming platforms to offer their services to minors from 8 PM until 9 PM on Fridays, weekends, and public holidays. The country had previously reduced gaming hours for teens to 1.5 hours per day in 2019.