BILI - Chinese tech stocks dip after draft rules by China to curb internet use by minors
2023-08-02 10:06:38 ET
The Cyberspace Administration of China (CAC) has drafted guidelines for preventing minors from spending too much time on their smartphones, dealing a potential blow to social media providers.
Chinese tech shares fell on Tuesday following the announcement. Short video service provider Kuaishou Technology ( OTCPK:KUASF ) ( OTCPK:KSHTY ) saw its stock dip ~4% , Weibo ( WB ) was down ~5% , Baidu ( NASDAQ: BIDU ) closed ~4% down and Tencent ( OTCPK:TCEHY ) ( OTCPK:TCTZF ) fell ~3% on the Hong Kong exchange. The Chinese companies' stocks on U.S. exchanges are also trading lower - Alibaba ( BABA ) ~3% and Bilibili ( NASDAQ: BILI ) ~4% , to name a few.
Among the moves — which are aimed at curbing interent addiction — the agency noted that smart mobile terminals should provide different usage time management services for minor users based on different age groups. When the daily use time limit is exceeded, the mobile smart terminal should automatically close other apps except for specific ones and those exempted by parent.
Those under the age of 8 will be limited to use internet up to 40 minutes per day; no more than 1 hou for those between 8 to under 16 years of age; and a default total use time of no more than 2 hours for those between 16 to under 18 years of age. The draft provides parents with exemption operations.
The CAC added that mobile smart terminals are prohibited from providing services to minors from 10 p.m. to 6 a.m.
For complaince, the CAC noted that smart mobile terminals, apps, distribution platforms should cooperate with the inspection carried out by relevant management departments, and provide necessary technical and data support and assistance.
The mobile internet information service providers should provide services as per rules and should not collect user data beyond the scope, the CAC added.
The parties should also set up necessary emergency response mechanisms to ensure that emergency services for safety of minors are not blocked.
The CAC said that the deadline for comments and feedback is Sept. 2.
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Chinese tech stocks dip after draft rules by China to curb internet use by minors