Home ยป China Revises Oversight of New Online Game Regulations: Tencent and NetEase Stock Prices Immediately Rise Following News

China Revises Oversight of New Online Game Regulations: Tencent and NetEase Stock Prices Immediately Rise Following News

China’s authorities have released a new draft legislation that regulates and oversees online gaming, effectively blocking access to certain websites. The revised version of the legislation was expected, as it aligns with earlier statements made by the authorities. This new legislation has created confusion within the Chinese gaming industry, resulting in a significant decrease in the stock prices of major gaming companies.

While this news may not come as a surprise, it is worth noting that earlier reports had mentioned that China’s authorities had instructed the National Press and Publication Administration (NPPA) to release this draft legislation. Immediately after the news broke, the stock prices of Tencent and NetEase, two major gaming companies, experienced an increase.

The new draft legislation includes several provisions that are likely to have a significant impact on the Chinese gaming industry. These provisions include restrictions on in-game spending and limitations on reward systems or any methods that compel players to consistently engage with the game.

In conclusion, China’s authorities have introduced a new draft legislation that aims to regulate and oversee the online gaming sector. This legislation has already had an impact on major gaming companies and has the potential to shape the future of the Chinese gaming industry. TLDR: China has released a new draft legislation to regulate online gaming, resulting in confusion and decreasing stock prices of major gaming companies. The legislation includes provisions such as restrictions on spending and reward systems.

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