China To Rethink New Gaming Rules After Tech Giants Lose Billions

Penka Hristovska
Penka Hristovska Senior Editor
Penka Hristovska Penka Hristovska Senior Editor

Chinese authorities will likely revisit the tightening game rules they proposed to curb spending on video games after the news of the proposed restrictions caused major tech companies to lose billions of dollars.

The media regulations in China “will study them carefully and further revise and improve them,” reported state broadcaster CCTV on Saturday following “concerns and opinions raised by all parties.”

The report comes days after Chinese authorities released a draft, outlining a long list of proposed rules and regulations aimed at reducing online spending and rewards in video games.

Per the new rules, online games would be prohibited from rewarding players for logging in every day, initial in-game purchases, or several consecutive purchases. Authorities also suggested putting caps on the amount a player can spend in a game, banning player-duels and content that violates national security, forbidding games from offering probability-based features to monitors, and stopping the auctions of virtual gaming items.

The announcement of the sweeping restrictions had an immediate impact on the marketplace — investors went into a frenzy that resulted in a whopping loss of up to $80 billion in market value in just 1 day.

The biggest gaming industry giant in China, Tencent, experienced a 16% drop in shares marking its largest 1-day decline since 2008. NetEase, a smaller competitor of Tencent,  plunged 28%, while Bilibili Inc., a video-sharing platform that’s hugely popular among games,  saw a 14% decrease.

“The government gaming curb measures will hurt gaming companies’ earnings. But the more important concern is people are worrying that more measures targeting the sector will come, just like what Beijing did to the education sector in the past,” explained Yang Junxuan, a fund manager at Shanghai Junniu Private Fund Management Co.

According to CCTV, now regulations might have to change the wording of the section of the draft rules that limit wallet top-ups and ban games from encouraging daily logins.

About the Author
Penka Hristovska
Penka Hristovska
Senior Editor

About the Author

Penka Hristovska is an editor at SafetyDetectives. She was an editor at several review sites that covered all things technology — including VPNs and password managers — and had previously written on various topics, from online security and gaming to computer hardware. She’s highly interested in the latest developments in the cybersecurity space and enjoys learning about new trends in the tech sector. When she’s not in “research mode,” she’s probably re-watching Lord of The Rings or playing DOTA 2 with her friends.

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