China approved 105 online video games on Monday amid efforts to ease concerns after regulators proposed new, tougher rules on gaming. Video games like NTES stock rebounded on Tuesday after falling on Friday.
X
On Friday, China's gaming regulator, the National Administration of Press and Public Administration, proposed new restrictions on how long minors can play video games, in-game spending limits and more. The proposed rules have raised concerns about a return to sweeping crackdowns on the gaming industry and perhaps beyond.
netease (NTES) fell 16.1% in US stock market trading on Friday. Tencent Holdings (TCEHY) fell 12.4% to a 52-week low. Bilibili (Billy) fell 4.9% after hitting a 52-week low during the day. Specialized in live broadcasting Hoya (Hoya) decreased by 10.7%.
E-commerce giants Ali Baba (Baba), JD.com (Jordanian dinar) And Pinduoduo (PDD) fell more than 1% on Friday, on fears of a broader regulatory crackdown.
Over the weekend, the NPPA said it would hear feedback from video game makers and players. The 105 video games approved Monday, which included titles from NetEase and Tencent, were the highest in 17 months.
Hang Seng Street in Hong Kong was closed for Christmas and will remain closed until Wednesday.
On Tuesday, NTES rose 5.4% and Tencent rose 4.2%. BILI stock advanced 2.1%. BABA, JD.com and PDD shares rose.
Please follow Ed Carson on topics at @edcarson1971x/Twitter at @IBD_ECarson And Bluesky V @edcarson.bsky.social For stock market updates and more.
You may also like:
Do you want to get quick profits and avoid big losses? Try SwingTrader
Best growth stocks to buy and watch
IBD Digital: Unlock IBD's featured stock listings, tools and analysis today
Tesla near buy points; A group competing to seize the EV crown
Two giants form new buy points in an unstoppable rally
“Devoted student. Bacon advocate. Beer scholar. Troublemaker. Falls down a lot. Typical coffee enthusiast.”