President Xi Jinping’s government has decided that it will impose restrictions over children’s gaming hours by limiting it to three hours a week. While this move left the most prominent gaming market in shock, the Capital has left the signs that it will continue to watch over and control the expansion of big tech giants in its country.
Xinhua, a state agency, citing a notice by the National Press and Publication Administration, reported that tech gaming giants from Tencent Holdings Ltd. to NetEase Inc. can now only offer gaming hours to minors from 8 P.M. to 9 P.M. on Fridays, weekends, and public Holdings. Earlier, the restrictions imposed were for one hour a day for minors upto the age of 12 years and two hours for children between 13 to 18 years of age.
The expectations are that as the attractive gaming market finally lured investors after having bargained from the regulatory intrusions in past months; the new impositions may soon persuade them to turn their backs. The consequences of these impositions are evident as NetEase slid down 9.3 % in pre-market trading in New York, whereas Porsus NV, one of the biggest shareholders of Tencent, saw a downfall in Europe.
Daniel Ahmad, an analyst at Niko Partners, said, ‘This ruling is the strictest one to date and will essentially wipe out most spending from minors, which we note was already extremely low.’
While the market doesn’t seem to be welcoming the decision with open arms, the government, on the other hand, has made its own claims. A top-level committee led by the President said that step was taken to prevent ‘the disorderly expansion of some platforms’. Along with this, the government intends to curb gaming addiction of its youth and prevent any imminent surge in cases of myopia and push them towards something productive.