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$20bn cut from Tencent value over Chinese games regulator nonsense

$20bn cut from Tencent value over Chinese games regulator nonsense

Chinese tech and entertainment giant Tencent has seen its first dip in quarterly profits in 13 years after local regulators announced changes to how games are released in the region.

As reported by Reuters, the company's value dipped by 5.3 per cent or, um, $20bn today (Friday, August 31st) after China's content regulators announced new restrictions on video games in order to fight growing myopia - shortsightedness - among the youth. 

What's more, Tencent's market value has dropped by $164bn since January 2018, going from being the biggest company in China by market cap to second place behind nemesis Alibaba Group. This hasn't been helped by said regulator simply not approving new games for release in the region since the end of March

Tencent isn't the only Chinese company whose stock prices have been hit by this news. NetEase stock declined 7.19 per cent, while Alibaba - who has less exposure in games - saw its shares drip 2.18 per cent.

These changes in what is allowed in China when it comes to games follow a five-month drought of new titles in the region as the local regulatory body underwent a restructure stopping the release of fresh content in the region.


Editor - PC Games Insider

Alex Calvin launched PCGamesInsider.biz in August 2017 and has been its editor since. Prior to this, he was deputy editor at UK based games trade paper MCV and content editor for marketing and events for London Games Festival 2017. His work has also appeared in Eurogamer, The Observer, Kotaku UK, Esquire UK and Develop.

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