Chinese tech shares falls as country looks to limit children to two hours a day on their phones
The Cyberspace Administration of China also said that they have proposed a ban on internet access via mobile devices from 22:00 to 06:00 local time for children
- Aug 3, 2023,
- Updated Aug 3, 2023 3:41 PM IST
Chinese tech shares on Wednesday saw a decline on Nasdaq following a recommendation from the nation's cyberspace regulator to impose limits on smartphone usage among individuals under 18 years of age.
Notable companies like Alibaba and video-sharing platform Bilibili witnessed a drop in their share prices on Wednesday’s trading session on NASDAQ and on Hang Seng Index and Shanghai Composite they saw further losses on Thursday.
The Cyberspace Administration of China (CAC) also said that they have proposed a ban on internet access via mobile devices from 22:00 to 06:00 local time for children. The regulatory proposal mandates that industry stakeholders, including mobile device manufacturers, app developers, and app stores, integrate a minor mode function to set usage limits that vary depending on the user's age.
Under these guidelines, teenagers between 16 and 18 years old are allowed up to two hours of screen time daily, whereas those below the age of eight are allocated just eight minutes. As the proposal remains open for public input, major technology companies are expected to play a significant role in enforcing these rules, akin to their involvement in gaming restrictions, noted Ray Wang, the founder and CEO of Silicon Valley-based consultancy Constellation Research.
Wang acknowledged that while there could be ways for children to bypass these measures, there's a consensus that gaming restrictions have been relatively well implemented.
The repercussions were evident in the stock market as Alibaba's shares closed more than three per cent lower in Hong Kong on Wednesday. Meanwhile, Bilibili experienced a nearly seven per cent decline in the same territory. By midday on Thursday, Alibaba's stock was trading approximately two per cent lower, and Bilibili faced a 0.5 per cent decrease.
However, the technology giant Tencent, which had previously closed around three per cent lower, managed to recover slightly with a 0.1 per cent increase in Hong Kong.
China has undertaken multiple measures to combat video game addiction, which officials contend is detrimental to children's well-being. In November 2019, the country implemented a curfew on online gaming for minors, prohibiting gameplay between 22:00 and 08:00.
Moreover, gaming time was capped at 90 minutes on weekdays and three hours on weekends and holidays. Nearly two years later, authorities imposed a limit of three hours of gaming per week for children. State media even labelled online games as "spiritual opium".
However, these stringent regulations have impacted Chinese tech companies, allowing the US to surpass China as the world's largest gaming market by revenue, as reported by research firm Newzoo.
Chinese tech shares on Wednesday saw a decline on Nasdaq following a recommendation from the nation's cyberspace regulator to impose limits on smartphone usage among individuals under 18 years of age.
Notable companies like Alibaba and video-sharing platform Bilibili witnessed a drop in their share prices on Wednesday’s trading session on NASDAQ and on Hang Seng Index and Shanghai Composite they saw further losses on Thursday.
The Cyberspace Administration of China (CAC) also said that they have proposed a ban on internet access via mobile devices from 22:00 to 06:00 local time for children. The regulatory proposal mandates that industry stakeholders, including mobile device manufacturers, app developers, and app stores, integrate a minor mode function to set usage limits that vary depending on the user's age.
Under these guidelines, teenagers between 16 and 18 years old are allowed up to two hours of screen time daily, whereas those below the age of eight are allocated just eight minutes. As the proposal remains open for public input, major technology companies are expected to play a significant role in enforcing these rules, akin to their involvement in gaming restrictions, noted Ray Wang, the founder and CEO of Silicon Valley-based consultancy Constellation Research.
Wang acknowledged that while there could be ways for children to bypass these measures, there's a consensus that gaming restrictions have been relatively well implemented.
The repercussions were evident in the stock market as Alibaba's shares closed more than three per cent lower in Hong Kong on Wednesday. Meanwhile, Bilibili experienced a nearly seven per cent decline in the same territory. By midday on Thursday, Alibaba's stock was trading approximately two per cent lower, and Bilibili faced a 0.5 per cent decrease.
However, the technology giant Tencent, which had previously closed around three per cent lower, managed to recover slightly with a 0.1 per cent increase in Hong Kong.
China has undertaken multiple measures to combat video game addiction, which officials contend is detrimental to children's well-being. In November 2019, the country implemented a curfew on online gaming for minors, prohibiting gameplay between 22:00 and 08:00.
Moreover, gaming time was capped at 90 minutes on weekdays and three hours on weekends and holidays. Nearly two years later, authorities imposed a limit of three hours of gaming per week for children. State media even labelled online games as "spiritual opium".
However, these stringent regulations have impacted Chinese tech companies, allowing the US to surpass China as the world's largest gaming market by revenue, as reported by research firm Newzoo.