[Asia Economy Reporter Kim Suhwan] Shortly after Chinese state media strongly criticized online games as "spiritual opium," triggering a stock market crash, Chinese government-related agencies rebutted by stating that "games can spread positive energy," showing the authorities' wavering stance on game regulations.
According to the South China Morning Post (SCMP) in Hong Kong on the 5th, the Game Publishing Committee (GPC) of China claimed in an interview with the Chinese media 21st Century Business Herald on the night of the 3rd that online games can bring benefits to society and spread positive energy.
They emphasized that the Chinese authorities' regulations on related industries will be targeted within a narrow scope.
They also added that the gaming industry is already applying strict regulations on underage users to address game addiction.
The GPC is an organization under the China Audio-Visual and Digital Publishing Association, which directly responds to the Central Propaganda Department of the Chinese Communist Party and receives support from the Chinese government.
On the morning of the day the GPC interview was released, the Economic Information Daily, a newspaper published by the Chinese state-run Xinhua News Agency, ran an article titled "Spiritual Opium Has Grown into a Trillion-Worth Industry," pointing out the problem of youth game addiction and mentioning Tencent's representative mobile game "Wangzhe Rongyao" (Honor of Kings) several times.
Following this, stocks of major Chinese gaming companies including Tencent, NetEase, and XD, which are among the top market cap leaders, all plunged more than 10% in the Hong Kong stock market after opening.
The Economic Information Daily's article disappeared from its homepage and WeChat account at noon on the same day immediately after the stock crash but was later reposted online in the evening with the phrase "spiritual opium" removed.
Regarding this, SCMP cited sources saying, "The Economic Information Daily's article did not reflect the official position of the Chinese government."
However, the impact of the article extended beyond China, affecting gaming stocks in South Korea and Japan as well.
Tencent, which suffered significant losses from the stock plunge, announced measures on the afternoon of the same day, including banning item purchases during gameplay for users under 12 years old and further reducing daily game time for minors.
NetEase also pledged to create a "Green Cyberspace" for Chinese youth by additionally restricting game time.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
