More than 500 public offerings of tencent! "Spiritual opium" affected 1.64 trillion yuan of funds, and Feng Bo, Zhang Kun, Wang Zonghe, Xie Zhiyu and other subordinates each had heavy positions in their own products

Financial Associated Press (reporter Zhou Xiaoya Shen Shuhong) news, an article from the central media, to the online game labeled "spiritual opium", but also to today's market to bring a heavy blow. As of the close of Hong Kong stocks, Tencent Holdings was quoted at HK$447.40, down 5.81%; Heartbeat Company was quoted at HK$43.9, down 8.6%, NetEase was quoted at HK$145.6, down 7.96%,; and Bilibili was quoted at HK$646.5, down 3.29%.

Numerous public offerings have been affected. As of the end of June, 506 funds under 76 fund companies in the market had repositioned Tencent Holdings, and the total size of these funds reached 1.64 trillion yuan at the end of the second quarter. From the perspective of the number of shares held, the number of shares held by the public fund at the end of the second quarter was as high as 198 million shares, accounting for 2.07% of its outstanding shares.

During the same period, a total of 219 funds increased their holdings in Tencent Holdings. From the perspective of the number of shares held, Zhang Kun's E Fangda Blue Chip Selection is undoubtedly the fund with the largest number of Tencent Holdings shares among all funds. As of the end of June, E Fangda Blue Chip Select held a total of 18.1 million shares of Tencent Holdings, its third largest heavy stock, and increased its holdings by 2 million shares from the first quarter.

This was followed by Hsing Quan Heyi, co-managed by Xie Zhiyu and Yang Shijin, which held 3.9932 million shares of Tencent Holdings at the end of June, making it the second largest heavy stock. Feng Bo's E Fangda Competitive Advantage Enterprise and E Fangda Mid-Cap Growth, tencent Holdings as the largest heavy stock.

Like Feng Bo, there are also 135 funds that regard Tencent Holdings as the largest heavy stock, including Qianhai Open Source Shanghai-Hong Kong-Shenzhen Advantage Selection jointly managed by Qu Yang and Fan Jie, E Fangda managed by Chen Hao for balanced growth, and Southern Xingrun Value Held by Shi Bo for one year.

In addition, funds such as Penghua Ingenious Selection led by Wang Zonghe, Dongfang Hong Qidong held for three years by Li Jing, E Fangda high-quality strict selection for three years held by Xiao Nan, Hongde Ruize, jointly managed by Qin Yi and Yu Haocheng, and Invesco Great Wall Performance Growth managed by Liu Yanchun, all held more than 2 million shares of Tencent Holdings shares at the end of the second quarter.

Game stocks overwhelmed by "spiritual opium"

Today, the Economic Information Daily released a draft of the investigation entitled "'Spiritual Opium' Has Grown into Hundreds of Billions of Industries", saying that the harm of online games has increasingly gained the consensus of society, often referring to "spiritual opium" and "electronic drugs", and criticizing Tencent Games and its "Glory of the King" by name.

According to the article, in 2020, the data shows that 62.5% of underage netizens will often play games online, and more than half of children and adolescents in China are myopic, and the phenomenon of affecting school and triggering personality alienation due to addiction to online games is on the rise. The new "drug" of online games has grown by leaps and bounds into a huge industry. In 2020, the actual sales revenue of China's game market was 278.687 billion yuan, an increase of 20.71% year-on-year. Tencent Games, which occupies half of the industry, achieved operating income of 156.1 billion yuan in 2020.

Affected by the news, the Hong Kong stock game sector fell collectively, Tencent Holdings fell more than 10% in the morning; Heartbeat Company once fell below the price of HK$40 per share, a decline of more than 20%; NetEase also followed the decline of more than 15%.

However, then things ushered in a reversal, and Tencent, which was in the focus of public opinion, urgently issued an emergency post in the afternoon to launch a new measure of "double subtraction and doubles" for the game. Among them, the "double reduction" includes the reduction of time and recharge, the online time limit for non-holiday minor users is reduced from 1.5 hours to 1 hour, the holiday is reduced from 3 hours to 2 hours, and minors under 12 years old ("primary school students") are prohibited from spending in the game. "Doubles" include cracking down on identity fraud and combating cheating.

At the same time, the long article of the Economic Reference Newspaper was also deleted. According to other market news, Huang Yimeng, chairman of the heart company, posted in the circle of friends that calling the game a word "spiritual opium" is not only very hurtful, but also extremely insulting, and feels humiliated for millions of practitioners in the game industry who dream of games, provide players with high-quality cultural and entertainment life, and strive for the cultural output of the motherland.

In the afternoon, related game stocks began to stop falling and recover, and the decline narrowed.

As of the close of Hong Kong stocks, Tencent Holdings was quoted at HK$447.40, down 5.81%; Heartbeat Company reported HK$43.9, down 8.64%,; NetEase reported HK$145.6, down 7.96%,; bilibili reported HK$646.5, down 3.29%.

However, as of the press release, some popular Chinese stocks in the United States fell sharply before the market, NetEase fell nearly 10%, Bilibili fell more than 8%. In terms of A shares, 37 Interactive Entertainment fell 5.61%, Gigabit fell 3.72%, Perfect World fell 5.29%, and Century Huatong fell 5.26%.

There is also market news that NetEase Games announced the launch of the 2021 "Summer Minors Network Environment Special Rectification" activity. NetEase has completed the upgrade of the anti-addiction system of its online operation online games, in addition to the real-name authentication of game accounts, there are also reasonable restrictions on the game time and game consumption of minors. NetEase game background can effectively identify suspected minors, reducing the occurrence of minors using other people's ID cards to avoid anti-addiction restrictions.

At the same time, after confirming the identity of the minor, NetEase will also use a variety of ways to intervene and verify the account, and take measures to restrict recharge or open the anti-addiction system. In addition, in the game, NetEase's existing anti-addiction system will also be upgraded with summer special actions, and NetEase Games will add more technical identification methods such as behavior identification in the identification of minors evading anti-addiction certification, improve the accuracy of identification, and achieve stricter control.

506 funds hold 198 million shares of Tencent Holdings

As of the end of June, 506 funds under 76 fund companies in the market had repositioned Tencent Holdings, and the total size of these funds reached 1.64 trillion yuan at the end of the second quarter. From the perspective of the number of shares held, the number of shares held by the public fund at the end of the second quarter was as high as 198 million shares, accounting for 2.07% of its outstanding shares, and the total market value of the shares held reached 96.450 billion yuan.

However, overall, the overall position of the public fund in Tencent Holdings in the second quarter shrank slightly, reducing by 12.7917 million shares from the end of the first quarter. In the same period, the proportion of the stock market value held by the public offering to the net value of the above-mentioned funds was only 0.42%. From this point of view, even if Tencent Holdings falls sharply, the overall impact on public funds is limited.

Nevertheless, many funds have been badly injured in terms of individual funds, especially those that hold more than 10% of the equity of the fund's net value. Among them, TMT thematic funds and related ETFs bear the brunt of this.

As of the end of the second quarter, a total of 219 funds had increased their holdings in Tencent Holdings. In this context, China Merchants SSE Hong Kong Stock Connect ETF, Taikang CSI Hong Kong Stock Connect TMT Theme, Southern Hang Seng China Enterprise ETF, Huaxia Shanghai-Hong Kong Stock Connect Hang Seng ETF, Southern Hang Seng ETF and other products, the tracking indexes all regard Tencent Holdings as a stock with higher weight, and the proportion of the stock market value held by it in the net value of the fund has reached 18.62%, 18.43%, 16.99%, 10.74% and 10.25% respectively.

During the same period, Zhang Kun managed E Fangda Blue Chip Selection and E Fangda High-quality Enterprise Three-year Holding, Feng Bo Managed E Fangda Research Selection, Qu Yang Management Qianhai Open Source Shanghai-Hong Kong-Shenzhen Blue Chip, Li Yaozhu Managed Guangfa Shanghai-Hong Kong-Shenzhen New Starting Point, Wang Zonghe Managed Penghua Ingenious Selection, Liu Xu Managed Dacheng Ruiyu Six-Month Holding, Ning Jun and Zhang Feng jointly led the Fuguo Shanghai-Hong Kong-Shenzhen Performance-Driven, Nie Shilin Managed Anxin Growth Momentum One-Year Holding and other funds, holding Tencent Holdings Market Value to the net value of tencent holdings accounted for more than 9% of the net value of the fund.

From the perspective of the number of shares held, Zhang Kun's E Fangda Blue Chip Selection is undoubtedly the fund with the largest number of Tencent Holdings shares among all funds. As of the end of June, E Fangda Blue Chip Select held a total of 18.1 million shares of Tencent Holdings, its third largest heavy stock, and increased its holdings by 2 million shares from the first quarter.

This was followed by Hsieh Anderson, co-managed by Xie Zhiyu and Yang Shijin, whose holdings of Tencent Holdings reached 3.9932 million shares at the end of June, making it the second-largest heavy-weight stock. However, compared with the previous quarter, the fund has reduced its holdings in Tencent Holdings by 467,800 shares.

E Fangda's competitive advantage enterprise managed by Feng Bo regards Tencent Holdings as the largest heavy stock. As of the end of the second quarter, the fund held 3.9364 million shares of Tencent Holdings, accounting for 13.49% of the stock position. Another fund managed by Feng Bo, E Fangda Mid-Cap Growth, also made the stock its first heavy position, and the number of shares held by it reached 2.7374 million shares at the end of the second quarter.

Like Feng Bo, there are 135 funds that regard Tencent Holdings as the largest heavy stock, including Qianhai Open Source Shanghai-Hong Kong-Shenzhen Advantage Selection jointly managed by Qu Yang and Fan Jie, E Fangda Balanced Growth managed by Chen Hao, Nanfang Xingrun Value Held for One Year by Shi Bo, China Europe Vision co-managed by Zhou Yingbo and Cheng Yuxuan, and Hui Tianfu Innovation for the next 18 months managed by Luo Jienan.

It is worth mentioning that in the second quarter, 94 funds also withdrew Tencent Holdings from the top ten heavy positions, such as Hu Xinwei's Hui Tianfu Mid-Cap Value Selection and Hui Tianfu Consumption Upgrade, Zhan Cheng's Invesco Great Wall Shanghai-Hong Kong-Shenzhen Leading Technology and Invesco Great Wall Industry Trends, Li Huasong's Ping An Research Ruixuan, Zhang Hui's Southern ESG Theme and Southern Cheng'an Preferred, as well as Yinhua Fuli Select co-managed by Jiao Wei and Qin Feng, Yinhua Xinyi co-managed by Li Xiaoxing and Zhang Ping, Qianhai Open Source Shanghai-Hong Kong-Shenzhen Wisdom co-managed by Cui Chenlong and Wei Chun.

Will the game industry be overwhelmed by public opinion?

In this regard, Liang Ce, manager of Qianhai Open Source Fund, believes that the current game industry may face certain regulatory pressures, but it is not appropriate to over-interpret this report. Last week, the leader of the Central Propaganda Department proposed at Chinajoy that the game industry should further enhance cultural consciousness, boutique awareness, international awareness and safety awareness, from the overall attitude, the supervision of the development of the game industry is still a positive attitude, but will be tightened in content review, minors anti-addiction and other aspects, basically continuing the policy tone since 2018, "In this can develop but to embrace the regulatory background, we think the game industry may have pain, but after short-term adjustment, The competitive advantage of the head manufacturers is expected to be further amplified, and in the long run, they are still optimistic about the development prospects of the game industry. ”

Zhongyuan Securities pointed out that at present, the valuation of the game sector after continuous adjustment and decline is significantly lower, and some of the head game companies in the sector are facing problems such as product launch and publicity delays, upward purchase costs, coupled with the high performance base in the first half of 2020, resulting in pressure on net profit growth in the first half of 2021. At present, the game sector is at the double bottom of valuation and performance growth, and it is expected that since Q3, the game company will enter a new product cycle, and the valuation and performance are also expected to usher in a double repair. It is recommended to pay attention to the game companies that have oversold in the early stage, and pay attention to the boutique process of game companies and the overseas layout.

Essence Securities said in a recent weekly report that although it is difficult to determine whether there are more industries that will be subject to more stringent policy control as the Internet, education and games, it seems that this policy adjustment is more of an event impact in the short term, and the resulting sharp decline in the market has come to an end, and the bottom of the market may have been formed.