Gaming industry takes a hit following tightened measures

Shanghai shares ended lower on Friday, led by the declines of game operators after market sentiment was weakened following China’s proposed tougher measures against the online gaming industry.

The Shanghai Composite Index dropped 0.46 percent to close at 2,725.25 points. For the month, the gauge fell 5.25 percent.

Pharmaceutical companies, mining firms and consumer shares are among the biggest decliners.

Shares of game operators dropped after China's Ministry of Education said on Thursday that the country is going to take measures to control the total number of online games and limit the time young people spend playing them.

Hangzhou Electronic Soul Network Technology Co Ltd fell 3.04 percent to 17.25 yuan (US$ 2.52) and Shanghai Fukong Interactive Entertainment Co Ltd dropped 4.98 percent to 2.67 yuan.

The Global index compiler MSCI included 226 China large-cap A shares on its MSCI Emerging Markets Index earlier this year. These stocks have a partial inclusion factor of 2.5 percent.

Starting from September 3, the factor of these shares will increase to 5 percent, which is expected to bring more funds into the A-share market. MSCI indices are tracked by global funds at an estimated amount of US$ 3.7 trillion.