NetEase Stock Plummets As China Limits Gaming Time For Minors

Reuters reports that Chinese regulators have cut down the online game hours for players below eighteen to an hour of gameplay on Fridays, weekends, and holidays.
National Press and Publication Administration said users under the age of 18 would only be able to play games from 8 p.m. to 9 p.m. local time on those days to curb the nation's growing addiction.
Bloomberg reports that Chinese gaming giant Tencent Holdings Ltd TCEHY had already begun implementing similar restrictions.
Tencent's share prices plunged following a media report touting the sector as "spiritual opium." China will prohibit online gaming companies from offering gaming services to the age group beyond the stipulated hours and with name verification systems in place.
Previously, China limited the total length of time minors could access online games to three hours on a holiday or 1.5 hours on other days.
The NPPA also aims to increase the frequency and intensity of inspections for online gaming companies.
China's NetEase Inc NTES is in final negotiations to rope in Yakuza franchise creator Toshihiro Nagoshi from Sega Sammy Holdings Inc SGAMY, Bloomberg reports.
The move further intensifies NetEase's rivalry with Tencent to scoop up video game talent and assets in Japan to diversify against domestic regulatory scrutiny.
Price Action: NTES shares traded lower by 8.35% at $85.02 in the premarket session on the last check Monday.