What happened: A stock price tumble wiped out over $15 billion in Tencent’s market value amid concerns about its gaming revenue. The fall came after regulators blocked the sale of blockbuster game “Monster Hunter: World” on Tencent’s WeGame platform. Analysts expected the Capcom-developed game to be one of Tencent’s biggest sellers but its listing disappeared within a week of its release after regulators reportedly received a large number of complaints about its content.
Why it’s important: China’s entertainment industry has increasingly been at odds with regulators in recent months. Short video platforms and video game distributors and developers have been hit hard in a crackdown on “vulgar” and “inappropriate” content in a government-led move to increase its control over cultural content. Tencent had to alter “PlayerUnknown Battleground” (PUBG) last year before it was allowed to distribute the game as it was deemed too violent. Additionally, after China’s content regulator went through reforms, many firms are still waiting to be granted licenses for new games which have been on hold since March.