Shares in Chinese gaming companies such as Tencent and NetEase fell after a local regulator banned underage users from playing video games for more than three hours a week . During afternoon trading in Hong Kong, NetEase lost 2.9%, while Tencent lost more than 3%, but later recovered slightly.
According to analysts, the latest restrictions of the Chinese regulator are unlikely to have a serious impact on the giants of the gaming segment. Perhaps this is one of the reasons why Tencent's share price began to recover from the fall. Recall that earlier this week, China's National Press and Publication Administration announced that minors in the country will be able to play video games for no more than three hours a week, whereas previously they were allowed to interact with games for up to 90 minutes a day for most of the day.
Games are the largest source of revenue for Tencent and NetEase, but analysts believe the new restrictions will not have a major impact on companies. Earlier, a Tencent spokesman said that only a small portion of the company's gaming division's revenue comes from underage users. The situation is similar in the case of NetEase, the vast majority of whose income comes from adult users. It is worth noting that local authorities have long been concerned about gambling addiction among the country's young population, so the industry is under the scrutiny of regulators.
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