Beijing has silently removed the proposed restrictions on the video game industry from the official website, weeks after the initial guidelines caused significant declines in the market value of local gaming giants. The link to the draft rules was inaccessible as of this morning, as reported by Haitong Securities earlier on Tuesday. Shares of Tencent and NetEase surged following the news. Haitong analysts noted, “This could possibly indicate that there will be further changes in the new measures,” accessed via S&P Global Market Intelligence.
The decision to remove the draft rules comes in the wake of the removal of a key official from the head of the publication bureau of the Communist Party’s Propaganda Department, due to the unexpected release of the draft rules, which surprised investors and gaming companies. According to local media reports in recent weeks, authorities may be considering revising some of the proposed rules following the negative impact on the market.
China’s video game regulatory authority had initially proposed new measures to address excessive time and money spent on computer and smartphone games, including eliminating rewards for daily play that can lead to addiction and restricting in-game purchases to limit spending.
