China's Gaming Restrictions Send Tencent and NetEase Stocks Plummeting
Chinese regulators have introduced new rules aimed at curbing spending and rewards in the gaming industry, dealing a blow to the world's largest games market. The rules include setting spending limits for online games and banning certain reward mechanisms. Shares in Tencent Holdings and NetEase, two of China's biggest gaming companies, plummeted in response to the announcement. Beijing has been increasingly strict on video games, implementing playtime limits for minors and suspending new game approvals. The new rules are the most explicit regulations yet and also address concerns over user data. Despite the crackdown, China's gaming industry saw a return to growth in 2022 after a decline in revenue the previous year.