China's online game approval process slows, game company stock prices plummet
On August 30, 2021, a rule was announced in China that 'bans online games for more than 3 hours a week'. The rule has hit Chinese game companies hard, causing major stock prices to fall sharply. New information also reveals that the process of approving online games in China has been significantly delayed.
China's regulators said to slow their approval of new online games, as Beijing's campaign against gaming addiction heats up | South China Morning Post
Chinese Videogame Stocks Fall After Summons From Regulators --WSJ
https://www.wsj.com/articles/chinese-videogame-stocks-fall-after-official-summons-11631185853
In China, state media criticized 'games are spiritual ahen' in early August 2021, and on August 30, the National Newspaper Publishing Office (NPPA), one of the administrative agencies under the control of the Chinese government, said '18 years old.' Children under the age of and teens can only play online games up to 3 hours a week. '
A rule that 'prohibits online games more than 3 hours a week' has appeared, games are only allowed 1 hour x 3 days a day --GIGAZINE
Response to the fact that the new rule was announced, China, which is known as the world's largest game company Tencent and net Ys of the stock price plummeted . Tencent recorded a 8.5% decline and NetEase recorded a 11% decline. On the other hand, stock prices in neighboring countries are showing signs of growth as China tightens game regulations. Sea , a game company in Singapore, is one of the game development companies that grew significantly in 2021, but succeeded in raising $ 6 billion (about 660 billion yen) in anticipation of globalization on September 8. Stock prices continue to rise.
According to an article published in Hong Kong by the South China Morning Post on September 9, the new rules have slowed the approval process for new online games in China. A person who provided information to the South China Morning Post said that the approval process was delayed after the Chinese Communist Party's public relations department and NPPA had discussions with Tencent and NetEase on the 8th. Stated.
Another person who attended the meeting said that the slowdown in the approval process was 'necessary to ensure smooth and successful steps to reduce underage game addiction.' In addition, it seems that the approval process has already been delayed by more than one month. Since September 2019, NPPA has announced about 80 to 100 newly licensed online games in the middle of the month or at the end of the month, but not in August 2021. According to sources, it is undecided when the slowdown in online game approval will be eased.
Tencent told CNBC, 'We believe in healthy gameplay and take the physical and mental health of minors very seriously. Thanks to the guidance and instructions from the relevant regulators, youth. We will endeavor to fully comply with all rules related to gameplay and content regulation. ' NetEase also said, 'We aim to build and promote a healthy gaming environment in China, to provide higher quality games and to promote a healthy and responsible gaming environment for young players. We will continue our efforts. '
Tencent stock falls after Chinese regulators summon gaming firms
https://www.cnbc.com/2021/09/09/tencent-stock-falls-after-chinese-regulators-summon-gaming-firms.html
The stagnation of the approval process is also affecting Apple. Apple was locked out of China in 2020, and in December it removed a large number of game apps to comply with Chinese regulations. The regulation is expected to further impact App Store revenue.
China not issuing new game licenses, may impact App Store earnings | AppleInsider
https://appleinsider.com/articles/21/09/09/china-not-issuing-new-game-licenses-may-impact-app-store-earnings
And China's cultural regulation policy goes beyond games. On September 2, regulators ordered broadcasters not to advertise 'abnormal aesthetics' such as nasty men, vulgar influencers, high-paying stars, and immoral performers. .. As a result, some talent shows will be banned.
China bans reality talent shows to curb behaviors of'idol' fandoms | China | The Guardian
https://www.theguardian.com/world/2021/sep/02/china-bans-reality-talent-shows-to-curb-behaviours-of-idol-fandoms
China Orders Broadcasters to'Put An End' to'Sissy Men,' and'Other Abnormal Esthetics'
https://www.newsweek.com/china-orders-broadcasters-put-end-sissy-men-other-abnormal-esthetics-1625446
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in Game, Posted by darkhorse_log