TECH - China Ousts Official Amid Gaming Regulation Backlash Wiping Billions Off Major Game Stocks | Benzinga
In the wake of contentious gaming regulations that caused havoc in China’s gaming stocks, a principal official has been discharged from the country’s press and publications regulator.
What Happened: Feng Shixin, the head of the publishing unit of the Communist Party’s Publicity Department, was removed from his position. The department oversees the National Press and Publication Administration (NPPA), the regulatory body for China’s vast video game sector, according to a report by Reuters.
The decision to remove Feng was a response to the NPPA’s proposed regulations last month, which led to a significant depreciation in the stocks of the video game industry, including industry giant Tencent Holdings Ltd (OTC:TCEHY). The NPPA’s proposed regulations, aimed at curbing spending and the use of incentives encouraging video gaming, led to nearly $80 billion being erased from the market value of China’s two largest gaming companies.
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Amidst tightening regulations ...