A raft of proposed new Chinese gaming curbs has wiped out $32-billion from Tencent’s stock. The declines may not be over.
Chinese regulators will curb excessive spending and rewards that encourage online gaming.
Tencent and NetEase shed more than $60-billion of value on Thursday as investor fears grow that Chinese regulators are preparing to tighten their grip dramatically on the world’s largest gaming industry.
Chinese gaming and media stocks including Tencent and NetEase fell on Thursday, a day after authorities summoned them to ensure they implemented new rules for the sector.
China will forbid minors from gaming more than three hours most weeks of the year, imposing their strictest controls yet in a blow to the world’s largest mobile gaming arena.
Chinese regulators have sketched out new requirements for videogame approvals following a year of scrutiny.
China has approved 80 new videogame titles in the first batch of licences granted by the media regulator after the end of a nine-month freeze.
China’s Internet sector wrapped up the third quarter earnings season with its slowest growth on record.