(Bloomberg) — China approved 105 domestic games on Monday, the latest sign that Beijing is softening its stance after its move to tighten restrictions on the industry led to an $80 billion loss last week.
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The addresses included those operated by Tencent Holdings Ltd. and NetEase Inc., the two leading game publishers in China that have been hit by Beijing’s new rules. Monday’s approvals show that Chinese authorities support the development of online games, the industry association said in a WeChat post republished by the official Xinhua news agency.
Chinese officials have raised concerns again that they will launch another round of technology crackdowns after the National Press and Publication Administration, the top gaming regulatory body, on Friday announced new rules to limit online game development, including an unspecified limit on spending by adult players.
Additional restrictions include a ban on frequent login bonuses, forced duels between players, and even a ban on content that violates national security.
With the market value of Tencent and NetEase falling by tens of billions of dollars in Hong Kong on Friday, the NPPA announced during trading hours the approval of 40 imported gaming titles, including those operated by the two companies. The move did little to help restore investor confidence.
Read: Tencent leads $80 billion rout as China revives fear of repression
Several analysts, including those from Citi, said shortly after the new restrictions came to light that Tencent and NetEase should not be significantly affected, but that did not prevent the companies’ shares from falling in US trading.
The administration said on Saturday that it would listen to feedback from stakeholders including companies and players to improve the rules.
The sweeping restrictions, which caught industry players and investors by surprise on the last trading day before Christmas, reminded many of the brutal crackdown the tech sector has seen in 2021. That year, various agencies suddenly imposed restrictions on sectors from e-commerce to entertainment, triggering… To curb the technology sector. At Jack Ma-backed Ant Group and Alibaba Group Holding Ltd. While killing the online education industry by declaring the profits illegal.
“Recent events reflect the government’s desire to create a larger, more diverse gaming landscape with higher quality innovative content but without excessive monetization or ‘pay-to-win’ games,” said Yang Wenfeng, senior vice president of the Shanghai-based company. said game studio Paper Games. “The government would rather publishers earn profits through fair practices and product innovation, rather than deepening their monetization strategies.”
Read: Asian Games stocks mixed as China considers reviewing new restrictions
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