Chinese internet and entertainment conglomerate Tencent’s stock market value plummeted by $20 billion after the Chinese government implemented new videogame and internet regulations. The rule changes were part of an effort to improve the health of the nation’s citizens.
A recent study by China’s Ministry of Education highlighted an increase in myopia cases. It lists mobile gaming, heavy study loads, and a lack of physical exercise as the main reasons for nearsightedness in young people. In April, the Chinese government stopped approving new mobile game releases.
“From a revenue growth perspective, gaming is a key area of weakness, our biggest game is not monetizable,” said Tencent President Martin Lau on a conference call according to Bloomberg.