China’s decision to implement harsh restrictions in the gaming sector has sent shares of giants in the industry, such as Tencent and South African company, Naspers global internet arm, Prosus tumbling on Friday.
The announcement made by China wiped billions of dollars off the tech companies value.
China said it would restrict the online gaming industry, aimed at limiting in-game purchases and compulsive playing behaviour.
Following the news, Tencent tanked more than 15% in Hong Kong, while rival Netease was down more than 30%. In South Africa, Naspers was down almost 14%, while Amsterdam-listed Prosus, its consumer internet arm, fell more than 12%. Naspers holds about 25% of Prosus.
Beijing first moved against the gaming sector in 2021 as part of a sprawling crackdown on big tech, including a strict cap on the amount of time children could spend playing online.
At 5 pm on Friday, Naspers shared had fallen 17.7% while Prosus fell by 17.4%.
BUSINESS REPORT