Chinese Game Stocks Fall After China Proposes Online-Game Regulations
By Jiahui Huang
Chinese gaming stocks traded in Hong Kong dropped after Beijing released draft regulations for the online game industry which included restrictions on the incentives to play or spend more online.
Shares of Netease, one of China's major online gaming companies, was 22% lower at 126.30 Hong Kong dollars (US$16.17) Friday, on track for their largest one-day loss since July 2021.
Tencent, another Chinese gaming giant, was 11% lower, on track for its largest one-day loss since October 2022. The benchmark Hang Seng Tech Index was down 3.1%.
Gaming stocks dropped after Chinese officials released draft regulation for the online gaming industry. The proposals included banning minors from tipping game players and limiting users' in-game spending.
Game companies aren't allowed to set rewards to induce behavior such as rewards for daily logins, first-time recharges or continuous recharges, according to the draft proposal released by the National Press and Publication Administration.
The proposal also prohibits minors from tipping hosts who livestream games and stops companies from offering probability-based lottery services to under-18 users.
NPPA said it is seeking public comment on the rules until Jan. 22, 2024.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
December 22, 2023 00:37 ET (05:37 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
Six Sports Betting and iGaming Stocks Trading at a Discount
-
4 Predictions for Stocks and the Economy for the Second Half of 2024
-
What Broadening Rally? AI Stocks Dominate Again In Q2
-
After Earnings, Is Nike Stock a Buy, a Sell, or Fairly Valued?
-
Worst-Performing Stock ETFs of the Quarter
-
Top-Performing Stock ETFs of the Quarter
-
Q2 In Review and Q3 2024 Market Outlook
-
5 Stocks to Buy for 3Q 2024
-
Industrials: Sector Offers Investment Opportunities as Performance Lags Broader Market
-
Consumer Defensives: Even Amid Macro Pressures, Deals Permeate the Landscape
-
33 Undervalued Stocks
-
Utilities: Can the Stocks Keep the Rally Going?
-
Basic Materials: Following Index Decline, We See Many Long-Term Opportunities
-
Healthcare: Valuations Look Attractive In Most Industries
-
Financial Services: Amid Uncertainties, We See the Most Value In Banks and Credit Services
-
Consumer Cyclicals: Even With Anxiety Over Spending, We See Attractive Valuations