From Dow Jones & Company:



Chinese authorities have announced draft rules to crack down on spending and rewards in online gaming, leading to sharp declines in the stock prices of NetEase Inc. and Tencent Holdings Inc. The proposed rules aim to curb excessive spending on games, ban rewards from multiple logins, and include pop-up warnings for overspending. Additionally, the rules prohibit game content from leaking state secrets. As a result, NetEase’s stock fell by 22% and Tencent’s stock fell by 12% in Hong Kong trading, leading to a 1% drop in the Hong Kong Hang Seng Index. This news is detrimental for China shares, as the Hang Seng is down 16% and set for its fourth-straight losing year, making it one of the worst performers in Asia and globally in 2023.



Original: NetEase sinks 20%, Tencent 11% after China proposes new rules for online gaming companies