The company lost the status of the most expensive corporation and lost to the Alibaba Group.
On August 31, the Chinese government proposed measures to combat child myopia, which, according to the authorities, is related to their excessive presence in front of computer screens. According to the initiative, the proposed methods will help reduce the number of children with the disease by 5% by 2023.
The government proposed to limit the time that children can spend in online games and reduce the number of new titles that receive permission to release.
In this regard, after the close of trading, the market value of the Chinese Tencent fellby $ 20 billion. After the news about the initiative of the Ministry of Education, the share price fell by 5.4%, and by the close of the stock exchange by 4.9%. According to Reuters , the plans of the government also affected the cost of other gaming companies from China.
As a result, Tencent lost the status of the most expensive company in the region and ceded to the Alibaba Group. According to market capitalization, the gaming company now ranks second in the country. Since January, the cost of Tencent has fallen by 160 billion dollars.
Previously, the gaming company independently imposed time limits in the Honor of Kings for children under 12 and 18 years old. According to the latest financial report, Tencent’s profit for the first quarter of 2018 fell for the first time in the last 12 years.
In January, Tencent had a market value of $ 500 billion.