The market values of tech and media company Naspers and its global consumer internet arm, Prosus, rebounded on Wednesday after China’s regulators sought to manage the fallout of draft rules designed to clamp down on online gaming.
On Friday, the communist state announced new rules to curb excessive gaming and spending on online games — a proposal that hit listed tech giants such as Tencent, which is 25%-owned by Prosus.
Tencent plunged 12% in Hong Kong on Friday, dragging down Naspers and Prosus, which fell 17.7% and 17.4%.
But on Wednesday, Tencent shares recovered 4% after authorities vowed to make improvements to the proposed rules that had sent stocks in video game companies plunging.
Naspers ended Wednesday’s session on the JSE at R3,006.23 — 9.62% higher on the day — while Prosus rose 9.86% to R541.79.
Chinese President Xi Jinping’s administration has previously sought to clamp down on online gaming, including restrictions on the hours and the age of players.
The government has also blamed myopia among the youth on gaming, and in a previous crackdown earlier froze the publication of new gaming titles.
With Reuters
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