Chinese regulators are planning sweeping curbs on online games, spooking investors and causing two of its most prominent gaming tycoons to lose a combined $10.2 billio.
Chinese regulators are planning sweeping curbs on online games, spooking investors and causing two of its most prominent gaming tycoons to lose a combined $10.2 billion in paper wealth in a single day.
In an unexpected move, the National Press and Publication Administration unveiled Friday a set of draft rules that would rein in spending on online games. The rules would cap the amount users can deposit in gaming accounts and ban the use of online rewards to encourage game-playing.
After the plans were released online, shares in Chinese gaming and social media giant Tencent dived as much as 16.8% in Hong Kong. Competitor NetEase’s shares plunged as much as 28% in the Asian financial hub. As the value of their stakes tumbled, Tencent cofounder Ma Huateng (also known as Pony Ma) saw $3.
