China seemed to backtrack on its stringent online gaming restrictions following an $80 billion market sell-off triggered by sudden draft rules aimed at curbing spending and limiting online time.
The announcement spooked investors, causing significant stock slumps for gaming giants Tencent and NetEase, along with social media platform Bilibili.
The market losses extended globally, raising concerns of a renewed tech sector crackdown reminiscent of 2020-2023.
However, China’s National Press and Publication Administration, the regulatory body, swiftly reassured the industry by expressing intent to study reactions and improve the draft rules.
The approval of 105 new online games on Monday suggests a potential easing of restrictions, indicating Beijing’s support for the industry.
This development follows previous measures in 2021, where Beijing imposed gaming bans on weekdays for those under 18 to address gaming addiction.
