- China withdrew proposed gaming rules that sparked an $80B stock selloff.
- The reason is unclear, reflecting unpredictable tech regulation.
- Beijing’s next move will indicate if the gaming crackdown continues.
Shares in Chinese gaming giants Tencent and NetEase rose this week after regulators unexpectedly removed proposed industry rules from their websites. The now-withdrawn proposals aimed to limit gaming time and spending, sparking an $80 billion stock selloff last month.
Unpredictable regulations
The rules vanished Tuesday, coinciding with the close of a public feedback period. Their initial announcement stunned investors, who were fearful of tightened gaming oversight. However, analysts told Reuters the move could signal impending revisions based on public input.
While the reason remains unclear, it reflects Beijing’s unpredictable stance toward tech regulation.
The next move will set the tone
Last year brought an under-18 gaming time limit and a month-long freeze on new title approvals. Still, this surprise withdrawal boosted hopes for a softened stance.
For Tencent, NetEase, and Chinese gamers alike, regulators have pressed pause on a crackdown that wiped billions in valuation.
Beijing’s next move will set the tone for this crucial growth market. For now, players are breathing a tentative sigh of relief.
