From Barchart:



The Chinese video gaming stocks continue to experience weakness in the stock market after a significant drop last Friday. This drop was a result of the publication of draft rules by China’s gaming regulator, aimed at limiting practices that promote excessive spending and time spent online by video game players.

The markets had previously held hope that the Chinese government had finished its crackdown on the country’s major tech companies. However, the new regulations targeting the gaming industry have dashed those hopes and caused further uncertainty about the future of the sector. This has resulted in continued weakness in the Chinese video gaming stocks, which has implications for investors and industry stakeholders.

The draft rules proposed by China’s gaming regulator seek to rein in practices that encourage players to spend more money and time online, causing concern among investors and industry insiders. As a result, Chinese video gaming stocks continue to face challenges in the stock market, adding uncertainty to the sector’s future prospects.



Read more: Will China’s Crackdown on Tech Continue?