China's Gaming Regulator Removes Proposed Restrictions from Website

Unusual move sparks speculation of policy reversal, leading to a surge in share prices for Tencent and NetEase.

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.