"Spiritual opium" - China's government puts Tencent share under pressure
Tencent is the largest game developer in the world - with significant stakes in Epic Games, Supercell, Riot Games, Activision Blizzard, Ubisoft and Frontier Development, but also in Snap, Spotify or Tesla. As China's largest Internet group, the company is currently suffering from a new regulatory offensive by the state in the games market. The government has called online games "spiritual opium," sending the share prices of game providers, which include Netease or Bilibili in addition to Tencent, on a downward slide. Tencent's share price has lost about 43 percent since its peak in February. Tencent has since responded by introducing time limits on games.
UPDATE: The article, labeled "spiritual opium," was later deleted and then republished - without the two words. "The report certainly does not reflect the official government opinion," SCMP reports from government sources. As a result, the share price recovered somewhat, gaining about 4 percent.
The author and/or related persons or companies may own the shares mentioned herein or are already invested in these shares, e.g. via an investment vehicle. This article is for general information purposes only and constitutes a free expression of opinion and not investment advice. Please also note the detailed legal information.
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