Chinese state media has softened its rhetoric on online gaming after a highly critical article sent the value of leading tech companies into a tailspin.

A piece published by the Economic Information Daily on Tuesday likened online games to “spiritual opium” sparking fears of a regulatory crackdown. 

In response the value of Tencent Holdings Ltd., whose popular game Honor of Kings was name checked by the newspaper, nosedived by more than 6 per cent while other industry leaders also took a financial hit.

The article has since been reposted with the terms “spiritual opium” and “electronic drugs” removed.

On Wednesday, an opinion piece in the state-run People’s Daily newspaper gave further indication that Beijing has moderated its tone on online gaming while remaining critical.

Its author Zhao Yichen called on “all sectors of society” to help stop children from gaming excessively. 

He praised recent regulation which limits the times of day minors can game online and bans phones from classrooms, going on to criticise certain “games and webcasts” that are “full of vulgarity, violence and other elements that endanger the physical and mental health of minors.”

Although the article did not dispel concerns that stricter regulation could be forthcoming the gentler tone of Chinese state media has positively impacted the gaming industry. Tencent Holdings Ltd. shares have rallied and are trading up 3.32 per cent in the past 24 hour period.

Read more:Tencent shares fall ten percent amid crackdown fears