DJ China's Emphasis on Young Gamers Might Not Mean Further Tightening -- Market Talk
0820 GMT - China's recent emphasis on the gaming habits of young people might not be a sign the sector would come under regulatory scrutiny as many investors fear, Jefferies says. A state media outlet on Tuesday criticized videogames as "opium for the mind" and called for tougher regulation, sending shares of major game developers including tech giant Tencent tumbling more than 10%. Jefferies points out that regulators sound supportive of the online-gaming industry, and that the protection of young users has been a continuing focus and likely won't lead to major policy changes. Chinese authorities reiterated their support for the online-game sector at a major industry conference last week, it notes. (yifan.wang@wsj.com)
(END) Dow Jones Newswires
August 03, 2021 04:20 ET (08:20 GMT)
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