Investing.com - Tencent Holdings Ltd (HK:0700)’s share prices tumbled as much as 5% on Friday as China’s government unveiled plans to limit the number of new online games titles.
Citing worries over addiction among children, China’s Ministry of Education said it would adopt measures to limit the time young people spend playing online games. It would also explore the idea of creating an age-appropriate notification system.
The news came after Tencent’s much-hyped video game “Monster Hunter: World” was pulled down from its online store less than a week after its official launch on Aug. 8.
The company reported its first decline in profit for the first time in a decade earlier this month, while its share prices is now down almost 30% from their January peak.
Other game producers that rely heavily on the China market also suffered, with Japan-listed Capcom Co. Nexon Co. plunging 7% and 5% respectively on Friday.