Chinese government to take key shares in Tencent
The Chinese government has bought some key shares in a number of tech companies including Tencent.
As reported by the FT, the state has acquired what are called “golden shares”, usually a one per cent slice of a company that comes with a huge number of rights. This includes a seat on the board and even the right to veto key business decisions.
Exactly what form this will take place with the government’s involvement with Tencent is currently unclear as discussions are still underway. It has been reported that it will definitely involve the Chinese state owning a stake in one of the company’s operating divisions in the country. It’s unclear right now whether this would impact Tencent’s games business.
This comes in the wake of a wave of moral panic across China, including claims that video games were “spiritual opium”. Worries about addiction have seemingly eased, with the country’s industry trade body claiming that it has been “basically solved”.
China has also opened up game approvals\, including for those of foreign games. Though it seems that the government still wants to have a hold on what tech companies in the region are getting up to.