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.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks