China is set to enforce new gaming laws on the nation’s vast video game sector after fresh regulations were applied to reign in excessive use and rewards for repeated play.
As a result, Tencent Holdings Ltd has led an $80 billion sell-off in some of the Chinese market’s biggest online names. The moves have created some panic among investors, bringing back recollections of the hit on tech in 2021, as reported by Bloomberg.
Back then, the government provided an instant shock to its industries, from e-commerce to entertainment, putting checks on the likes of Ant Group and Alibaba, whilst online education was left reeling after profits were declared illegal.
This latest action, confirmed on Friday (Dec 22), includes caps on how long players can play certain games, a ban on content deemed to violate national security and a halt on prizes for frequent log-ins. These changes came without warning and now investors are left to…
