The media controlled by the Chinese authorities have softened criticism of video games. They no longer call them an “electronic drug”, but still urge society to fight gambling addiction. Against this background, Tencent shares managed to recoup almost half of yesterday’s fall.
Recall that on Tuesday morning, the Economic Information Daily published an article that talked about gambling addiction among teenagers. Its authors called video games “electronic drugs” and “spiritual opium”, and Tencent is the main culprit of what is happening.
Shortly after the publication, the shares of major gaming companies in China sank. For example, at CMGE Technology, they collapsed by 22.3%, at NetEase — by 15.7%, and at Tencent — by 10.8%. By the close of the exchange, the companies managed to partially correct the fall, but their shares were still worth significantly less than before the article was published.
The Economic Information Daily article was removed from the newspaper’s website a few hours after publication. During the day, other media outlets published their own materials, which spoke more mildly about video games and no longer blamed Tencent.
People’s Daily also touched on the problem of gambling addiction among young people, but without harsh criticism. Instead, it stressed the importance of Chinese authorities, schools, families and society as a whole joining forces to protect children from the harmful effects of games. Note that People’s Daily is published under the auspices of the Central Committee of the Communist Party of China.
Hu Xijin, editor of the government-controlled Global Times, said on WeChat that the Economic Information Daily article was “ordinary.” But it was published at the wrong time, so many misunderstood what was written. Nevertheless, Hu pointed out that he could not imagine “that the authorities would simply ban online games once and for all.”
21st Century Business Herald shared an interview with the Publication Committee of the Chinese Association of Game Publishers, which works closely with the country’s authorities. In it, representatives of the committee called the games useful and capable of “broadcasting positive energy.”
Now Tencent shares have risen by 2.42%, which partially corrected the 6% drop that was observed yesterday at the closing of the exchange. The price of CMGE Technology shares also rose slightly (by 1%), but NetEase shares continue to fall (by 1.58%).
