Overview

• China's gaming regulator, the National Press and Publication Administration (NPPA), has removed proposed gaming restrictions from its website, leading to speculation that the rules may be scrapped.
• The proposed rules, announced in December 2023, included bans on daily login rewards, spending limits, and other monetization tactics in online games.
• The announcement of these rules led to a significant drop in share prices for Chinese gaming companies Tencent and NetEase, causing a combined market value loss of nearly $80 billion.
• After the removal of the proposed rules from the NPPA's website, share prices for Tencent and NetEase saw a sharp increase.
• The removal of the proposed rules from the website is unusual, as previous proposed regulatory changes typically remained on the site even after the period of public consultation had ended.