Beijing has made a subtle retreat, quietly withdrawing their proposed restrictions on the video game industry from the official website. This comes after the draft guidelines caused a staggering drop in the market value of local titans, amounting to tens of billions of dollars.
The link to the proposed rules was seemingly untraceable this morning, according to the first report by Reuters. Following this news, there was a noticeable surge in the shares of Tencent and NetEase.
This development comes on the heels of Beijing removing a key official – the head of the publication bureau of Communist Party’s Propaganda Department. This decision was made in light of the mishandling of the release of the draft guidelines, which caught both investors and gaming giants off guard.
Recent reports in the local media indicate that authorities may now be willing to backtrack on some of the initial proposals after the substantial market decline.
Last month, China’s video game regulator put forth a proposal to address rampant excessive spending of time and money on computer and smartphone games. Some of the recommended measures included abolishing rewards for daily play, which can contribute to addiction, as well as restricting in-game purchases to limit spending.
