Read more
11:34 AM · 22 December 2023

Chinese gaming stocks sink on new regulations

-
-
Open account Download free app

Chinese gaming stocks slumped today, pushing Hang Seng almost 1.8% lower during the final pre-Christmas session. Sell-off was triggered after new regulation draft was announced by the Chinese National Press and Publication Administration. New rules proposed by Chinese regulators will ban rewarding players for logging into online games every day as well as rewards for in-game spending. Both those measures are common incentives in online games, aimed at keeping players as engaged as possible.

An unexpected announcement of new, harsh rules reignites fears over a regulatory crackdown in China, that was seen as an abating risk as of late. New rules are expected to reduce number of daily active users, as well as limited ways for video game publishers to earn in-game revenue. This could be a big shift, as in-game revenue was one of the most popular monetization strategies used by companies.

Shares prices of top Chinese video game companies like Tencent and NetEase plunged 12.4% and 24.6%, respectively, during trading in Hong Kong today. US-listed shares of NetEase (NTES.US) are currently trading 24% lower in US premarket.

US-listed shares of NetEase (NTES.US) are set to open at the lowest level since February 2023 after Chinese regulators announce a new set of draft rules for gaming companies. Source: xStation5

1 April 2026, 12:35 PM

Market Wrap: European stocks join the bullish rally 🚀 Euro Stoxx +3%

1 April 2026, 10:48 AM

Will EssilorLuxottica and L'Oréal acquire part of the Giorgio Armani brand❓

1 April 2026, 10:44 AM

Nike slumps 10% after earnings falling to the lowest level since 2015 📉

1 April 2026, 7:44 AM

AU200.cash: mixed signals from the Australian economy ⚔️

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits