China’s Ministry of Education recently said it will be strengthening its regulations on online education and gaming services. In a statement, the ministry said online education companies should not offer minors live-streamed courses after 9 pm. Also, it said that companies should not provide minors with online gaming services between 10 pm and 8 am.
“Sleeping is essential to promote brain development, bone growth, vision protection, physical and mental health, and improve learning ability and efficiency of primary and secondary school students,” said the ministry. This is part of the organization’s ongoing efforts “to protect children’s sleep.”
Investors have given more attention to China’s online education sector, which has attracted growing interest since the COVID-19 pandemic has prompted a widespread switch to remote learning. China has also stepped up efforts to regulate the online gaming industry due to concerns over potentially violent and addictive games.
The Profit‘s Take:
These restrictions are completely unnecessary. As an investor, I would worry about making big bets on anything gaming related in China, as there is no way of knowing how the Chinese government will regulate the sector.
(All information was provided by Yahoo! Finance)