Gaming stocks lose $80 billion in one day
Gaming stocks lose $80 billion in one day
Investors spooked by new draft rules
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Chinese regulators announced on 22 December proposed rules to curb spending and rewards in video games.
The National Press and Publication Administration 国家新闻出版署, the regulator since 2018, issued the notice to publicly solicit opinions.
The document, Online Games Management Draft Measures for Comments (网络游戏管理办法草案征求意见稿) is 11,259 characters long, has 64 articles, and proposes stricter measures in online game approvals, content management, issuance and trading of game currencies and virtual props, publicity and promotion of games, and protection of minors.
If implemented, the new rules would curb “predatory transactions” (诱导性消费) in games:
Including banning enticing in-game rewards for daily login, first-time recharge, and continuous recharges.
网络游戏不得设置每日登录、首次充值、连续充值等诱导性奖励。
How was the reaction?
One industry executive was asked by 21st Century Business Herald what he thought of the draft. After a long period of silence, he replied:
"Difficult for me to tell. Why don’t you take a look at the market response?"
21世纪经济报道问一家游戏上市公司高管对征求意见稿有什么看法，在较长时间的沉默后，他回复记者：我不好讲，你直接看市场反馈吧。[4]
And respond the market did.
By the afternoon of 22 December, gaming company stocks, including Tencent, Xindong, China Mobile Games, all fell by more than 10%, with NetEase falling by over 20%.
Nearly $80 billion alone in market value was wiped from Tencent 腾讯 and NetEase 网易, China's two biggest gaming companies.
The timing did not go unnoticed with superstitious investors.
The announcement fell on the Winter Solstice (冬至), the darkest day of the year, and a festival in the Chinese lunar calendar.
Yesterday happened to be the "winter solstice", so the phrase “winter is coming again” was used to describe what happened. But many people in the gaming industry have become accustomed to "living in winter" and were not surprised. The market turmoil mostly came from outside the industry. [5]
昨日恰逢“冬至”节气，有不少人用“又遇寒冬”来形容行业昨天的遭遇。但事实上，身处游戏业之中的许多人已经习惯于“过冬”了，表现得大多相对淡定，剧烈的市场应激反应更多来自行业外部。[5]
Investors and the markets have been spooked by government before:
In August 2021, the "Economic Information Daily", run by Xinhua News Agency, published an article titled "The industry of 'Spiritual Opium' now worth hundreds of billions".
At that time, this article had a direct impact on the stock prices of many game-related stocks. Since then media described the gaming industry as "a bird frightened by the sound of a bow".
2021年8月，由新华社主管主办的《经济参考报》曾刊登了一篇文章，名为《“精神鸦片”已长成数千亿产业》。当时这篇文章在一天之内对诸多游戏相关企业的股价产生直接影响，不少媒体开始将游戏行业形容为“惊弓之鸟”。
A month before that, in July 2021, the Chinese government launched “Double Reduction Policy” (双减政策). Its devastating impact on China’s education sector is still fresh in the memory of investors, who interpreted the draft measures as potentially having the same impact on the gaming sector.
So, that's what we explore this week!
Favourite Five
1. 管 guǎn
interfere, meddle
这种管制细到连游戏公司怎么做促销，都管上了，是一种严格的干预手段 - This control is so granular that it even dictates how game companies should conduct promotions. It's a strict intervention. [3]
Note: Usually translated "manage" or "control." But here I've translated it as "meddle with." Read more about the subtle translations of common phrases in Chinese in this excellent post by Geremie Barme.
Related:
管制 guǎn zhì - control, restriction
多头管理 duōtóu guǎnlǐ – a situation where someone has to report to several managers
2. 课金 kè jīn
spending money in online games
新闻同时震动了疫情后盼望产业回暖的游戏产业从业人员和往常批判“氪金”游戏的玩家 - The news shocked both gaming industry professionals who hope for a revival after the pandemic and players who usually criticize games that encourage in-app purchases. [2]
Background: Originally from Japanese.
Related:
氪金 kè jīn – getting conned into spending money (坑钱) in online games (internet slang)
4. 精神鸦片 jīng shén yā piàn
spiritual opium
《经济参考报》曾刊登了一篇文章，名为《“精神鸦片”已长成数千亿产业》 - The Economic Information Daily once published an article titled "The industry of 'Spiritual Opium' now worth hundreds of billions". [5]
Background: A controversial phrase we first explored in August 2021.
4. 惊弓之鸟 jīng gōng zhī niǎo
a bird startled by the sound of a bow
不少媒体开始将游戏行业形容为“惊弓之鸟” - Many media outlets have begun to describe the gaming industry as "a bird frightened by the sound of a bow". [5]
Related:
一朝被蛇咬，十年怕井绳 yī zhāo bèi shé yǎo, shí nián pà jǐng shéng - Bitten by a snake on one day, afraid of the straw rope for ten years; once bitten twice shy
5. 寒蝉效应 hán chán xiào yìng
chilling effect
在近年来的种种“行业整顿”背景下，草案释放的信号已足够产生寒蝉效应 - Against the backdrop of various "industry rectifications" in recent years, the signals released by the draft are enough to create a chilling effect. [2]
Background: A translation of the English legal term, "the chilling effect", which means the inhibition or discouragement of the legitimate exercise of natural and legal rights by the threat of legal sanction.
Consuming the Conversation
Useful words
6. 打赏 dǎ shǎng
give reward, tip
网络游戏直播不得出现未成年人打赏情况 - Minors may not give rewards or tips in online game live-streams. [1]
Note: A common internet term. Users, players, social media fans can provide tips or rewards (money) via games or even on social media and live-stream broadcast rooms.
7. 严苛 yán kē
strict, stringent
仅就内容而言，并无太多更严苛的规范 - If you just look at the content, not many rules are too stringent. [1]
8. 动荡 dòng dàng
turmoil, unrest
之所以能够引发大规模股市动荡与从业者的讨论，重点恐怕也并不在文本本身 - It is probably not the content of the draft regulation that triggered widespread stock market turmoil and discussions in the industry. [1]
9. 急泻 jí xiè
sharp decline, rapid sell-off
直接引发次日包括腾讯、网易在内的多支中资游戏股急泻，市值蒸发过百亿美元 - It directly triggered a plummet in many Chinese game stocks, including Tencent and NetEase, with tens of billions of dollars evaporated from the stock market. [2]
Related:
大跌 dà diē - significant drop
重创 zhòng chuāng - suffer heavy losses, be severely damaged
一字跳水 yī zì tiào shuǐ - stock prices take a nosedive
10. 喇叭 lǎ ba
loudspeaker; what is said
怎么喇叭和行动是完全两个方向？该信什么 - Why is their action going in a completely different direction from their words? What should we believe? [3]
Note: A metaphor for government announcement or commitment.
11. 吸睛 xī jīng
eye-catching, attention-grabbing
这类的法案，很吸睛，也很迎合民粹 - Laws of this kind are very eye-catching and welcomed by the populists. [3]
Related:
民粹 mín cuì - populism
12. 吐槽 tǔ cáo
criticize humorously
这条和相关条目被不少业内人士吐槽以政策方式限制游戏企业正当牟利 - This and related clauses have been criticized by many industry insiders as a policy aimed at limiting the legitimate profits of gaming companies. [4]
Three-character phrases
13. 宅经济 zhái jīng jì
stay-at-home economy
疫情期间，游戏产业得益于人们困在家里渴望娱乐和陪伴的需求，和短视频一起从“宅经济”分到一杯羹 - During the pandemic, the gaming industry benefited from people's need for entertainment and companionship while stuck at home, grabbing a share from the "stay-at-home economy" along with short videos. [2]
14. 浇冷水 jiāo lěng shuǐ
pour cold water, dampen enthusiasm
连最坚定看多的股民胡锡进都评论说，股市刚有的一点回暖又被浇了冷水 - Even the most optimistic stock investor, Hu Xijin, commented that the stock market's slight recovery has been dampened again. [4]
Related: Same as 泼冷水.
15. 强心剂 qiáng xīn jì
stimulant, heart tonic
这针“强心剂”也并没有起到什么明显作用 - This booster also didn't seem to have any significant effect. [5]
Idioms
16. 灰飞烟灭 huī fēi yān miè
vanish into thin air, be completely destroyed
《网络游戏管理办法（草案征求意见稿）》出台，游戏企业股价大跌，连带股票市场下跌，4千亿产值灰飞烟灭 - With the introduction of the "Online Games Management Draft Measures Draft for Comments", gaming company stock prices plummeted, causing a ripple effect in the stock market, wiping out 400 billion yuan. [1]
17. 提心吊胆 tí xīn diào dǎn
live in constant fear, be on tenterhooks
我这个同学因此而总是提心吊胆，恍恍惚惚 - Because of this, my classmate always lives in constant fear, feeling absent-minded. [1]
18. 背道而弛 bèi dào ér chí
run counter to, be at odds with
退一万步说，你一定要搞，晚几年搞不行么？就这么急不可耐？只能说明，这些部委眼里，根本没有经济，完全与中央经济工作会议精神背道而驰 - Even if you insist on doing it, why can't you wait a few more years? Do you have to do it now? The urgency only shows that, in the eyes of these ministries, the economy is not important, which completely runs counter to the core message of the Central Economic Work Conference. [3]
19. 巨细靡遗 jù xì mí yí
in great detail, without missing anything
除了第三章中一些巨细靡遗的规定值得商榷以外，整个《网络游戏管理办法（草案）》并没有向目前的游戏行业传达出太多“坏”的信号 - Apart from some detailed provisions in Chapter Three that are worth discussing, the entire "Online Game Management Measures (Draft)" doesn't send too many "negative" signals to the current gaming industry. [5]
Related:
宜粗不宜细 yí cū bù yí xì - be broad rather than detailed
20. 见怪不怪 jiàn guài bú guài
be accustomed to seeing strange things, not be surprised by the unusual
相比之下，游戏从业者们对于此次草案的态度是相对平静的。这种平静可能来自于“见怪不怪” - In comparison, those in the gaming industry are not taken aback by this draft. This calmness may come from being accustomed to seeing unusual things. [5]
Phrases
21. 戴箍子嚼子 dài gū zi jiáo zi
impose numerous restrictions and regulations
中国有很多部门可以管游戏产业，箍子嚼子戴了一大堆，管肯定是管住了 - China has many departments that can regulate the gaming industry. With numerous restrictions and regulations in place, they surely have it under control. [4]
22. 夺路而逃 duó lù ér táo
flee in panic, escape by any means possible
其实大星觉得夺路而逃的股民太大惊小怪了 - In fact, I feel the stock investors who flee in panic are making a big deal out of nothing. [4]
23. 瞌睡碰到了枕头 kē shuì pèng dao le zhěn tou
you're sleepy and a pillow appears; have the right conditions
一个想扩权，另一个送来了扩权的理由，瞌睡碰到了枕头了 - One wanting to expand power, and the other providing reasons for the expansion, so it provides the perfect conditions to make it happen. [3]
Note: This is the first half of a two-part Chinese proverb, or a 歇后语 xiē hòu yǔ. The full version:
瞌睡碰到了枕头 —— 正是时候 kē shuì pèng dao le zhěn tou —— zhèng shì shíhou.
More:
扩权 kuò quán - power expansion
24. 塞翁失马，祸福相倚 sài wēng shī mǎ, huò fú xiāng yǐ
a blessing in disguise, misfortune may be a blessing in disguise
现在他也是个中年人了，上次我们聚会，还说到此事。我们说他那一栽也算是塞翁失马，祸福相倚 - Now that he's in middle age, we talked about this at our last gathering. We mentioned that his setback could also be considered a blessing in disguise. [1]
Related:
塞翁失马，焉知非福 sài wēng shī mǎ, yān zhī fēi fú - Another common way to say the same thing
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