Chinese firms questioned by market regulators after they jump on the metaverse bandwagon
- ZQGame, whose shares shot up more than 300 per cent after announcing a metaverse game in September, is being probed by the Shenzhen Stock Exchange
- The letter sent to ZQGame last week was not the first time the company has been asked to respond to questions regarding its involvement in the metaverse
They may be better known for developing mobile games and providing network services to street cafes, but a group of listed Chinese firms are now calling themselves builders of the metaverse.
However, these bold proclamations about their role in what many see as the next iteration of the internet are being met with scepticism from Chinese regulators.
While most people know ZQGame for its patriotic military games pitting Chinese soldiers against the Japanese army, the Shenzhen-listed company became a market darling after it announced in September that it would develop a metaverse game. Its shares have risen over 300 per cent since, reaching an all-time high of 37.22 yuan (US$5.82) last Friday.
ZQGame said its upcoming project is The Winemaker, a game which allows participants to play as managers of a Chinese wine company. It is said to have metaverse elements because the wine made in the game can also be physically produced in the real world. In addition, wine shops would receive authentication documents that could be minted as non-fungible tokens and traded among interested parties.
These so-called metaverse concept stocks have seen a huge bull run in China in recent months after the metaverse – described as a shared, immersive 3D virtual space where users can play, socialise and trade – was touted as the next iteration of the internet. But the investment fever is raising concerns among Chinese regulators, with economists and state media routinely issuing warnings over speculative behaviour in the market.