TECH - Why Is NetEase Stock Plummeting Friday? | Benzinga
NetEase, Inc (NASDAQ: NTES) stock is trading lower Friday as Chinese regulators introduced sweeping regulations targeting the video gaming industry to reduce spending and eliminate incentives that promote excessive gaming.
This move, which imposes spending limits for online games, significantly impacted the market, erasing nearly $80 billion in value from China's top gaming companies, Tencent Holdings Ltd (OTC: TCEHY) and NetEase.
The new rules prohibit online games from offering rewards for daily logins, first-time spending, or consecutive purchases – typical features in many games, Reuters reports.
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