Chinese Gaming Stocks Rebound After Regulators Soften Stance on Gaming Curbs
By Sherry Qin
Chinese gaming stocks listed in Shanghai and Shenzhen rebounded after regulators softened their stance on the latest proposal to further tighten controls on online games.
Shares of Shanghai-based online-game company Kingnet Network rose 6.0% early Tuesday before paring gains to trade 2.3% higher at 10.08 yuan ($1.41) at midday. Hangzhou Electronic Soul Network Technology and Sichuan Xunyou Network Technology advanced as much as 6.5% and 8.7%, respectively.
The rebound came after Chinese regulators approved 105 videogames on Monday amid efforts to ease concerns after tough new gaming rules proposed triggered massive losses.
China's National Press and Publication Administration will "further revise and improve the drafted proposal" after soliciting public opinion, it said in a Saturday statement.
On Friday, Tencent's Hong Kong-listed shares dropped 12%, wiping out $46 billion in market value in response to the proposed gaming curbs. NetEase plunged 25%. The Hong Kong market is closed for the Christmas holiday.
Citi analysts called Friday's selloff in gaming stocks an overreaction.
Many parts of the draft rules aren't new, and most online games have been operating under tight supervision, they said in a research note.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
December 25, 2023 23:54 ET (04:54 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
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