China's Video-Game Curbs Reverberates in Markets Worldwide – Yahoo Finance

(Bloomberg) — China’s raft of new measures limiting players’ spending on video games sent ripples through stock markets across the globe on Friday.
Most Read from Bloomberg
Hyperloop One to Shut Down After Failing to Reinvent Transit
OpenAI Is in Talks to Raise New Funding at Valuation of $100 Billion or More
Supreme Court Refuses to Fast-Track Trump Immunity Clash
Wall Street Learns That This Year, Nothing Beat Owning the S&P 500
Tencent Leads $80 Billion Rout as China Rekindles Crackdown Fear
Prosus NV fell as much as 20% in Amsterdam trading, erasing €15.5 billion ($17.1 billion) of market value at one point, after the regulator’s draft rules dealt a blow to the value of the company’s holding in Chinese internet giant Tencent Holdings Ltd. South African parent Naspers Ltd. also slumped by a fifth.
In Hong Kong, Tencent — in which Prosus holds a 25% stake — closed down 12%. In New York, the Nasdaq Golden Dragon China Index of US-listed Chinese stocks declined 2.4%, with video-game maker NetEase Inc. leading losses.
Ubisoft Entertainment SA, which Tencent invests in, fell as much as 8.3% in Paris trading, while US peer Unity Software Inc. also declined.
China’s gaming regulator on Friday published draft rules aimed at clamping down on practices that encourage players to spend more money or time in online games. A sweeping set of curbs on in-game rewards for frequent log-ins and purchases stoked fears of another industry crackdown in the world’s biggest mobile gaming arena.
The Chinese regulator will consider adjusting the draft rules based on feedback from relevant government departments, companies and users, state-owned China Press Publication Radio Film and Television Journal reported Saturday, without giving more details.
Prosus’s share-price slump shows that it’s sensitive to factors outside of its influence, according to Bloomberg Intelligence analyst John Davies. Its Tencent stake “casts a shadow over its other investments, and appears unlikely to change soon,” he said.
Prosus’s stock performance is closely linked to that of Tencent, given that three-quarters of its sum-of-the-parts value lies within the Chinese conglomerate. The Dutch firm counts on Tencent as its biggest investment in a wide-ranging portfolio of technology stocks.
Prosus has been trimming its investment in Tencent for more than a year to fund a buyback program. The company said earlier this month that its ownership dropped below 25%.
In Johannesburg, local benchmark the FTSE/JSE Africa All Shares Index declined as much as 1.8%, with Naspers and Prosus the biggest drags on the market.
Meanwhile, for Chinese equities, this year’s underperformance has turned from bad to worse. Friday’s decline deepens the Golden Dragon Index’s 2023 drop to about 8%, well behind the Nasdaq 100’s 54% gain.
“In a way it is a fitting end for a year that has severely disappointed China bulls,” said Rajeev De Mello, a global macro fund manager at GAMA Asset Management. “The performance gap between US and China equities is staggering.”
–With assistance from Ishika Mookerjee.
(Updates Saturday announcement on possible changes to the curbs in seventh paragraph)
Most Read from Bloomberg Businessweek
What Dermatologists Really Think About Those Anti-Aging Products
One Man’s Longevity Obsession Now Includes Fountain-of-Youth Injections
How the Elf on the Shelf Took Over Christmas
What the Oldest Lab Rodents Are Teaching Humans About Staying Young
The Most Secretive Longevity Lab Finally Opens Its Doors
©2023 Bloomberg L.P.
Chinese electric car maker Nio on Saturday unveiled a flagship model featuring self-developed technologies including semiconductors, betting they would help prop up earnings, as a bruising price war and slowing car demand weigh on profitability. The ET9 executive sedan, positioned in the same class as Mercedes Benz's Maybach and Porsche's Panamera series, is expected to start delivery in the first quarter of 2025 at an estimated price of 800,000 yuan ($112,178), Nio's founder and chief executive William Li said at the company’s "Nio Day" annual event. The car will be equipped with Nio’s self-designed autonomous driving semiconductor, 900-voltage electric drive for fast charging and large cylindrical battery cells, Li said at the event in the northwestern Chinese city of Xian.
Shares of Chinese tech firms Tencent and NetEase plunged Friday, while EA, Take Two, and Microsoft also declined in early trading.
Your bonus could become the gift that keeps on giving.
The clinical-stage biotech delivered positive trial results for its new COVID-19 preventative antibody treatment.
The Mondavi wine heir talked to Yahoo Finance about preserving the business his grandfather built.
Challenges like cord cutting, a tough ad environment, and more pressure to turn profits may prompt companies to reevaluate their portfolios.
U.S. startup ClearMotion will supply its active suspension technology for Chinese EV maker Nio's upcoming ET9 in a contract covering 750,000 cars over the lifetime of the luxury sedan model, the two companies said on Saturday. Nio was due to launch the ET9 on Saturday and the electric vehicle should go into production in late 2024. ClearMotion founder and chief technology officer Zack Anderson told Reuters that the company's ClearMotion1 suspension system uses a combination of hardware – a small unit containing a motor and power electronics sits in each wheel well of a vehicle – and software to read the road ahead and cut motion inside the car by "about 75% compared to the best technology in the market today".
The latest trading day saw Applied Digital Corporation (APLD) settling at $7.19, representing a +1.41% change from its previous close.
The Consumer Staples Select Sector is also under pressure.
If the fund manager's calculations are correct, Roku shareholders could enjoy a five-fold return. Is she right?
India's Ola Electric seeks to raise $661.8 million by selling new shares in an initial public offering, the six-year-old Bengaluru-headquartered startup said in draft papers filed with the country's market regulator on Friday. The paperwork for the initial public offering follows Ola Electric raising $384 million from Temasek and Indian government-backed lender State Bank of India in a debt-heavy funding round in late October. The startup is targeting a valuation of $6.5 billion to $8 billion in the IPO, a person familiar with the matter told TechCrunch.
Unfounded claims about offshore wind threatening whales have surfaced as a flashpoint in the fight over the future of renewable energy. In recent months, conservatives including former President Donald Trump have claimed construction of offshore wind turbines is killing the giant animals. Scientists say there is no credible evidence linking offshore wind farms to whale deaths.
In the most recent trading session, Toyota Motor Corporation (TM) closed at $180.86, indicating a +0.51% shift from the previous trading day.
Toyota Motor's small car unit Daihatsu Motor has decided to halt production at all its domestic plants until the end of January, the Nikkei business daily said on Friday, without citing sources. Following the Nikkei report, a Daihatsu spokesperson said the company was still holding discussions about the matter internally. The small car specialist said on Wednesday it would halt shipments of all of its vehicles after a safety investigation found issues involving 64 models, including almost two dozen sold under Toyota's brand.
(Bloomberg) — The US extended its claims on the ocean floor by an area twice the size of California, securing rights to potentially resource-rich seabeds at a time when Washington is ramping up efforts to safeguard supplies of minerals key to future technologies.Most Read from BloombergHyperloop One to Shut Down After Failing to Reinvent TransitOpenAI Is in Talks to Raise New Funding at Valuation of $100 Billion or MoreSupreme Court Refuses to Fast-Track Trump Immunity ClashWall Street Learns T
The China-based tech company fell after Chinese regulators proposed new rules aimed at curbing online gameplay.
(Bloomberg) — The Swiss franc jumped to its highest level against the dollar since 2015, when Switzerland’s central bank abandoned its policy to contain currency strength.Most Read from BloombergHyperloop One to Shut Down After Failing to Reinvent TransitTencent Leads $80 Billion Rout as China Rekindles Crackdown FearStocks Extend Bull Run on Soft Landing Narrative: Markets WrapSupreme Court Refuses to Fast-Track Trump Immunity ClashHarvard Financial Pain Grows as Blavatnik Joins Donor RevoltTh
HONG KONG (Reuters) -Chinese regulators announced on Friday a wide range of rules aimed at curbing spending and rewards that encourage video games, dealing a blow to the world's biggest games market, which returned to growth this year. The new rules, which will effectively set spending limits for online games, sparked panic among investors, wiping off nearly $80 billion in market value from China's two biggest gaming companies, as investors sought to gauge the potential impact on earnings and more restrictions in the offing. Online games will now be banned from giving players rewards if they log in every day, if they spend on the game for the first time or if they spend several times on the game consecutively.
Canoo stock has suffered as the hype and enthusiasm for EV stocks is fading.
(Bloomberg) — While now seen as a sure thing by the vast majority of the Bitcoin community, the options market is showing that traders are hedging bets ahead of a Jan. 10 deadline for the US to decide whether to allow exchange-traded funds holding the cryptocurrency. Most Read from BloombergHyperloop One to Shut Down After Failing to Reinvent TransitOpenAI Is in Talks to Raise New Funding at Valuation of $100 Billion or MoreSupreme Court Refuses to Fast-Track Trump Immunity ClashWall Street Lea

source