The decision of Chinese authorities to limit players’ spending on online games has led to a collapse in the value of shares of the largest gaming companies both in China and in the rest of the world. This job was reported by oppression Bloomberg.
On Friday, December 22, the National Press and Publication Administration of China issued guidelines stating that online game creators can no longer offer players incentives to log into games or make in-game purchases on a daily basis. Other measures include limiting in-game deposit amounts and issuing warnings about “irrational consumer behavior.”
Following the relevant announcement from the state regulator, Tencent Corporation’s Hong Kong-listed securities fell 16%, then recovered slightly and closed up 12%. The share price of its closest rival, NetEase, fell nearly 25%.
The Hang Seng Tech index of Chinese technology companies fell by 4.4%, falling to its lowest level since November last year.
Shares of Ubisoft Entertainment SA, in which Tencent has invested, fell 8.3% in Paris trading, while other U.S. video game stocks collectively lost 8.3%. Among the victims were major gaming companies such as Unity Software, Roblox Corp and Electronic Arts.
Previously from Chinese company Tencent lay off More than 100 people for various crimes.