From Time Inc.:



After the Chinese government’s release of draft rules for the gaming industry, shares of Tencent and NetEase have experienced a market rout, losing significant value. However, both companies saw gains on Wednesday after Beijing appeared to ease up on the new regulations, with Tencent’s shares up by as much as 6% and NetEase’s up over 10%.

The draft rules, initiated by the National Press and Public Administration, aim to limit the time and money players spend on online games. The announcement generated fears of another crackdown, but recent developments indicate that Beijing may be trying to temper these concerns. The NPPA will be accepting feedback on the new rules until Jan. 22, 2024, and has approved 105 new online games, including those from major companies like Tencent and NetEase. State-backed media outlets have also tried to explain the rationale behind the rules, and smaller gaming firms have announced share buybacks to calm investors. However, the release of the draft measures is not the first time authorities have targeted the video games industry.



Read more: Shares of Tencent and NetEase bounce back as Beijing seeks to quell fears of a new gaming crackdown