Chinese Game Stocks Drop Amidst Virtual Currency Legal Worries
The Chinese government has banned the sale of virtual currency for real money, which has caused some repercussions in the Chinese gaming industry. According to a report from Seeking Alpha, in three days since the ban, the stock prices for Chinese online game operators dropped as much as 10 percent.
Considering the size of the Chinese market (which earns more than $2.8 billion per year from virtual goods alone), this is obviously a significant decrease. The companies that experienced a drop included Shanda Online, Changyou, The9, NetEase, Perfect World, and Giant Interactive, all of which trade within the United States.
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