TCEHY - China's New Gaming Regulations Pose Challenges For Small Developers Warns UBS Analyst | Benzinga
The emerging gaming regulations in China could place smaller developers in a bind, potentially leading to a decline in overall online advertising revenue.
What Happened: The National Press and Publication Administration of China on Friday recently unveiled draft rules that disapprove daily sign-ins for games and other practices that generate revenue. Following the draft’s announcement, shares of Tencent Holdings Ltd (OTC:TCEHY), NetEase Inc (NASDAQ:NTES), and Bilibili Inc (NASDAQ:BILI) plunged to a yearly low, CNBC reported.
The rules are up for review until Jan. 24. Kenneth Fong, head of China internet research at UBS, indicated that these proposed regulations would impact smaller developers more than larger ones due to their reliance on revenue-generating practices.
Fong suggested that big game developers, with their strong R&D capabilities and strategies to enhance gamer engagement, might fare better. He also pointed out ...