Beijing authorities have issued a warning calling the metaverse a, ‘Grand and illusionary concept,’ saying that people who, ‘Blindly invest… will be burnt in the end’. The warning was issued today (September 9th) in state-run newspaper, The Securities Times.
According to The Marketplace Morning Report from the BBC World Service, the news of stringent regulation has sent tech shares in Hong Kong tumbling with the worst day for stocks in six weeks. The BBC reports that the value of Tencent shares dropped by 8%, and NetEase by 11%, with Hong Kong’s Hang Seng Index falling 2.3% today and smaller declines across Asia.
The move follows share price surges in the region of 35% this week for mobile Internet firm Zhejiang Jinke Culture Industry Co, following statements that it is working on products for the metaverse. This prompted the Shenzhen Stock Exchange to issue a letter requesting the company substantiate its claims.
A meeting was held yesterday between tech firms with the government and regulators, while authorities have paused approval of new games.
The Securities Times is quoted as saying, ‘It’s important for investors to tell the difference between genuine trends, and beautiful ‘bubbles’’.
This story was first published on TheVirtualReport.biz.