Govt to limit number of online games

Xi issues order as part of effort to protect children’s eyesight

SHANGHAI: Shares of Chinese video game companies plunged after the government unveiled plans to control the number of online games as part of a bid to prevent myopia among children.

The plan is the latest move to tighten government oversight over the country’s fast-growing and highly popular video game industry – and a new blow to their stock market fortunes.

The new regulations were announced on Thursday after Chinese President Xi Jinping issued an “important directive” to protect children’s eyesight.

The education ministry said in a statement on on Thursday that the authorities would regulate and control the number of Internet games and new titles.

The statement, which was signed by eight ministries, said the authorities would also explore an age-appropriate alert system and take actions to limit the amount of gaming hours among children.

The news sent the shares of Chinese video game companies sharply down yesterday morning.

Tencent dropped by more than 5% in Hong Kong while Perfect World Co, which was once listed on the Nasdaq stock exchange, sank almost 9% in Shenzhen.

Smaller game developers also lost ground in Shenzhen. Youzu Interactive Co plunged nearly 8% and Sichuan Xun You Network Technology lost over 8%. Ourpalm Co was down nearly 6%.

China has a high rate of myopia among students at an increasingly younger age, the official Xinhua news agency said, citing Xi’s order.

Myopia has seriously affected children’s physical and mental health, posing a big problem for the nation’s future, Xinhua said.

The plan follows a halt in the approval of new online game licences. — AFP