China’s Latest Gaming Restrictions Cause Tencent to Lose $54 Billion

China’s Latest Gaming Restrictions Cause Tencent to Lose  Billion


(Bloomberg) — China unveiled a raft of new measures to rein in ⁤spending and content in​ online games, signaling ​the start of another industry⁣ crackdown that wiped out roughly billion of Tencent Holdings Ltd.’s value.

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Beijing’s top gaming ⁤regulator on Friday published draft rules broadly designed ‌to clamp⁢ down on practices that encourage ⁣players ​to spend ‌more‌ money and time online. Among other things, they include a ban on rewards for frequent log-ins, forced player-duels and a vague prohibition on‍ any content deemed to ⁤violate state secrets.

The sweeping restrictions, which likely surprised industry players and investors, suggest Beijing is getting ready to launch another crackdown on the world’s largest mobile gaming arena. Tencent slid as much as 16% — its biggest intraday fall since 2008 — ‌while smaller rival NetEase Inc. dived 28%. Nexon ⁣Co., which derives a chunk of its revenue from China, ⁢fell 8%. Bilibili Inc., a social media service

2023-12-22 00:11:16
Original ​from ⁢ finance.yahoo.com
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