TECH - Tencent Stock Takes $54B Hit As China Introduces New Online Gaming Regulations | Benzinga
In an unexpected move right before Christmas, China’s top gaming regulator introduced new draft rules aimed at controlling excessive spending and online gaming usage. This announcement led to an $80 billion market selloff spearheaded by $54 billion in Hong Kong-listed Tencent Holdings Ltd. (OTC:TCEHY).
What Happened: The new regulations, introduced on Thursday, caught the industry off-guard on the final trading day before the holiday season, Bloomberg reported. The abrupt clampdown ignited fears of a reinvigorated crackdown on China’s gigantic internet sector, similar to the stringent tech-sector clampdown of 2021.
The newly introduced regulations comprise spending limits on in-game purchases, bans on rewards for frequent log-ins, and prohibition of any content that compromises national security. The broad and vague nature of these measures left investors and industry players struggling to anticipate potential implications.
With the introduction of these new regulations, Tencent experienced its largest ...