China Proposes New Regulations to Curb Online Gaming Spending

Major Gaming Companies Tencent and NetEase See Shares Drop as Industry Debates Potential Impact

China's National Press and Publication Administration has proposed new regulations aimed at curbing spending and time on video games, causing a significant drop in shares for major gaming companies Tencent and NetEase.
The proposed rules include banning online games from offering rewards for daily logins, first-time spending, or consecutive purchases, and requiring games to set limits on how much players can top up their digital wallets for in-game spending.
Regulators will also be required to process game approvals within 60 days, and games must store their servers within China's borders.
The draft regulations have sparked a debate among investors and industry analysts about the potential impact on revenue or user engagement.
The public can provide comment on these new rules until January 22, 2024.