Game stocks feel heat for 'distorting China's history'

Tencent (0700) and other video game shares slumped yesterday in Hong Kong after state broadcaster China National Radio criticized the online gaming industry for distorting Chinese history.

Tencent fell 3.49 percent to HK$453.80, NetEase (9999) fell 3.94 percent to HK$136.40, CMGE (0302) fell 2.41 percent, Archosaur Games (9990) fell 3.19 percent to HK$9.10, and Kingsoft (3888) fell 2.02 percent to HK$36.35.

In a commentary on its website last Friday, CNR called on regulators to strengthen the vetting of online games and have "zero tolerance" toward those games that distort history.

CNR said games that distort history could misguide young people and cited one example of a game in which Yue Fei, a Chinese general and national hero in the Song Dynasty, was depicted as a capitulator while Qin Hui, a chancellor who betrayed Yue, was positioned as a high-level gaming character.

The article said that online games, which disseminate history and culture, can subtly influence the thoughts and judgments of participants and get them to passively accept "man-made" history.

It said the online game industry must strengthen self-discipline, have basic respect for history and not cross the line when it comes to creating storylines.

A Tencent spokesperson said the company has no comment on the matter.

The latest attack comes on the heels of an article published this month which called online games "spiritual opium," and said that youngsters in the mainland were becoming addicted to them, while urging stricter curbs on the industry.

As Chinese regulators clamp down on a range of sectors from property to technology to private education, retail investors have been giving vent to their feeling in online forums, expressing their frustration about the series of critical articles in state media and the negative impact they have had on stocks.

Other technology shares also slumped with the Hang Seng Tech Index falling 2.57 percent to 6,420.14 points. The index has fallen 410 points over four consecutive trading days.

Baidu (9888) hit a record low since its listing in Hong Kong before it closing 4.8 percent lower at HK$146.70, a decrease of almost 42 percent from the initial public offering price of HK$252.

Bilibili (9626) fell 7.66 percent to HK$560.50, Kuaishou (1024) fell 6.75 percent to HK$74.65, and Meituan (3690) fell 5.14 percent to HK$221.40.

The benchmark Hang Seng Index fell 210 points or 0.8 percent to 26,181.46 points, dragged lower by the tech giants.