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Tencent’s and NetEase’s shares on the Hong Kong Stock Exchange rose by around 4% and 2.4%, respectively, after Chinese regulators removed the proposed rules that would tighten its grip on the gaming industry from the National Press and Publication Administration (NPPA) website.
Last month, China announced rules to limit spending and the use of rewards in video games. The market value of Tencent and NetEase dropped nearly US$80 billion after the announcement.
However, the page containing the draft of the rules on the NPPA website was no longer accessible as of Tuesday. The consultation period for the regulations also ended on Monday.
Nevertheless, there is a possibility that the regulator is preparing a revision, as some analysts told Reuters.
The spending limit on video games raised concerns among investors. The NPPA had previously said that it would improve the regulations by taking into account feedback from the public.
China’s gaming industry has been facing regulatory scrutiny in recent years. In 2021, the country restricted playtime for individuals under 18 and suspended approvals of new video games for about eight months.
Editing by Miguel Cordon and Lorenzo Kyle Subido
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