China gaming stocks drop as Beijing curbs children’s online play

Chinese gaming stocks tumbled on Tuesday after regulators cut back the amount of time children can play online each week to just three hours.

The Hang Seng Tech Index slid 1.5%, led by shares of Bilibili Inc. and NetEase Inc., which fell by at least 4.6% in Hong Kong after declines in their American depositary receipts. Shares of Meituan dropped as much as 2.1% as concerns over renewed regulatory crackdowns outweighed the food delivery company’s strong second-quarter revenue beat. "The regulatory environment is clearly continuing to pose a headwind for sentiment around China’s tech stocks and it’s tough to see a light at the end of the tunnel as that requires guessing the next move by the government,” said Bloomberg Intelligence analyst Matthew Kanterman. "Until the regulatory situation has clarity towards a final resolution, the headwind will likely remain in place.”