Here's Why Alibaba Rival Tencent's Stock Is Plummeting Today

Tencent Holdings Ltd's TCEHY Hong Kong-listed shares tumbled as much as 10.2% in early trading hours on Tuesday.

What’s Moving? Alibaba Group Holdings’ BABA rival Tencent HK shares were down by HKD 49 in early trading. The U.S. shares of the company had closed 0.20% higher at $61.32 on Monday.

Shares of Hong Kong-listed online gaming maker NetEase Inc NTES also plummeted about 12% in early trading hours to HKD 139.60 on Tuesday.

See also: How To Buy Alibaba Stock

Why Is It Moving? Tencent shares are down after a Chinese state media’s criticism of online gaming and the call for restrictions to "prevent addiction" and other negative impacts on children.

Tencent is among the world’s largest gaming companies and is known for high-profile games such as “Honor of Kings.”  

CNBC cited an article published on Economic Information Daily, a Chinese state-run publication, that claimed that online gaming is like “opium” and the addiction among children is “widespread” and could negatively impact their growth.

The report further claimed that more than half of China’s children were nearsighted and online games affect their education.

The criticism spooked investors who have already been wary of Beijing’s growing tough stance on the country's tech giants, e-commerce and ride-hailing companies.

See Also: Hot Chinese Stocks Like Nio, Alibaba, JD Are Falling On US-China Relations, Regulatory Concerns And Research Firm Says Institutions Are Buying The Dip

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