DJ Fears of Tighter Chinese Regulations on Gaming Sector Likely Unwarranted -- Market Talk
1009 GMT - Chinese authorities sound supportive of the country's online-gaming industry, Jefferies says. While investor are worrying about the possibility of tighter regulations, Jefferies thinks authorities are more concerned with protecting young gamers than regulating the industry as a whole. At a recent industry conference, two government officials encouraged game developers to adopt new technologies, improve the quality of games and expand overseas, which show a supportive stance, Jefferies says. The officials also indicated that the government hopes to address the sector's supply-chain imbalance, as distributors such as platforms and hardware makers take a large share of game developers' revenues. It reckons this would be quite favorable for game studios such as Tencent and NetEase. (yifan.wang@wsj.com)
(END) Dow Jones Newswires
August 03, 2021 06:09 ET (10:09 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.