TCEHY - Tencent And NetEase Surge After Chinese Regulator Pulls Draft Gaming Rules From Website | Benzinga
China’s gaming regulator has removed the draft rules from its website, which were proposed to limit spending and rewards that promote video game playing. This unexpected development has led to a surge in the shares of gaming companies.
What Happened: The National Press and Publication Administration (NPPA) of China removed the draft rules from its website, which were aimed at curbing excessive spending and rewards that encourage video game playing, as per a Reuters report on Tuesday.
The draft rules on the NPPA website became inaccessible as of Tuesday morning, despite being functional on Monday. The consultation period for these rules, initially causing market turmoil upon their announcement, concluded on Monday.
The removal of the rules sparked speculation among analysts, hinting at a potential revision. The NPPA has not provided immediate comments on the removal. Xiaoyue Hu, an analyst at Haitong Securities suggested, “There might be further changes in the new measures.”
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Shares of major gaming companies like Tencent Holdings Ltd (OTC:TCEHY) and NetEase Inc (NASDAQ:NTES), listed in Hong ...