Money

Stocks drop after China brands online games ‘electronic drugs’

Published

2 years ago

August 3, 2021

Anthony Lucas

Shares in two of China’s biggest online gaming companies have slipped after a state media outlet called them “electronic drugs”

Shares in Tencent and NetEase fell more than 10% in early Hong Kong trade.

Investors are increasingly concerned about Beijing cracking down on tech firms.

In recent months, Chinese authorities have announced a series of measures to tighten their stance on the technology sector as well as private education companies.

An article published by the state-run Economic Information Daily stated that many teenagers had become addicted to online gaming and it was having a negative impact on them. The news outlet is affiliated with the official Xinhua news agency.

The article cited Tencent’s hugely popular game Honor of Kings, saying students were playing it for up to eight hours a day, and asked for more curbs on the industry.

“Distroying a generation”

“No industry, no sport, can be allowed to develop in a way that will destroy a generation,” it said before going on to liken online games to “spiritual opium”.

Tencent has now confirmed it would introduce new measures to reduce children’s access to and time spent on its Honor of Kings game.

Tencent also confirmed plans to eventually roll out the policy to all of its games.

The recovery in share prices came as Economic Information Daily deleted the article from its account on WeChat.

Tencent also saw its shares fall last week after being ordered to end exclusive music licensing deals with record labels around the world.

Tencent is only one of a number of Chinese companies listed in the US, Hong Kong and mainland China to see shares fall drastically this year following China’s crackdown.

Last week saw shares in Chinese online tutoring firms slump after they were stripped of the ability to make a profit from teaching core subjects in China.

Officials have been worried after China’s latest census showed that the birth rate had fallen to the lowest in seven decades.

The new guidelines also restricted foreign investment in the industry.

The major shift in policy came as authorities try to ease the financial pressures of raising children.

Officials have been worried after China’s latest census showed that the birth rate had fallen to the lowest in seven decades.

Money

RBA maintains 4.35% rates as mortgage applications surge

Published

14 hours ago

December 5, 2023

ticker NEWS

The Reserve Bank of Australia (RBA) has decided to keep its official cash rate at 4.35%, citing concerns over the rapidly increasing number of mortgage applications.

This decision comes after several consecutive meetings where the RBA has refrained from adjusting interest rates.

The central bank’s decision to hold rates steady reflects their cautious approach to managing the current housing market boom. Mortgage applications have seen a significant surge in recent months, driven by record-low interest rates and increased demand for housing. While this has been a boon for the real estate industry, it has raised concerns about the potential for a housing bubble and financial stability.

Experts are divided on whether the RBA’s decision is the right course of action.

Some argue that maintaining low-interest rates is necessary to support economic recovery, especially in the wake of the COVID-19 pandemic. Others worry that the continued surge in mortgage applications without rate adjustments could lead to unsustainable levels of household debt.

In light of this decision, homeowners, prospective buyers, and investors will be closely watching the housing market’s trajectory and wondering how long the RBA can maintain its current stance.

Money

There’s a 50/50 chance of a 2024 recession

Published

20 hours ago

December 5, 2023

ticker NEWS

The economy has been remarkably resilient despite massive pressures – but is that about to change in 2024?

The US economy is in for a sharp slowdown in 2024 as a closely watched survey of top economists foresees stubbornly high inflation, a rise in unemployment and a 50% chance of recession.

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Money

Tesla insurance sued for ‘inflated’ premiums, judge rules

Published

24 hours ago

December 5, 2023

ticker NEWS

A judge has ruled that Tesla’s insurance unit must face a lawsuit alleging “inflated” premiums.

The decision comes after policyholders claimed the electric car company’s insurance division overcharged them for coverage.

The lawsuit, which was filed by a group of Tesla policyholders, alleges that the premiums charged by Tesla’s insurance unit were significantly higher than market rates for similar coverage.

The plaintiffs argue that Tesla’s insurance division engaged in unfair pricing practices, leading to overpayment by policyholders.

Tesla has not yet commented on the judge’s decision, but the lawsuit raises questions about the transparency and fairness of the company’s insurance pricing.

It also highlights the growing scrutiny on how tech companies enter and compete in traditional industries like insurance.