Tencent under pressure to step up its game as regulatory restrictions bite – Reuters
What happened: Chinese gaming and social media giant Tencent has lost around $200 billion in market value amid tightening regulations. The latest setback is that Tencent shut an online Texas hold’em poker game on Monday. Apart from hitches in the gaming business, Tencent’s messaging app WeChat, though essential to everyday life in China, has gained little traction overseas.
Why it’s important: As the authorities have frozen approval of new games, a number of Chinese social media companies are experiencing difficulties. However, Tencent’s fall is especially dramatic. The tightening is attributed to concerns about internet addiction and violent and lewd content of some games. According to analysts, there’s no sign that the government will loosen the regulation soon and Tencent will remain the victim.