Chinese Tech Giants Lose Billions as China Cracks Down on Online Gaming
• Tencent stock plunges 12.4% in Hong Kong, wiping out $47B in market value, after China unveils new rules to restrict online spending on games • NetEase stock drops 25%, losing $16.4B in market cap, as part of broader selloff of Chinese tech giants • New draft rules would set spending limits, ban certain features that induce high spending in games • Comes amid China's crackdown on gaming addiction among youth; under-18s already restricted to 3 hours of online games a week • Selloff extends pressure on Chinese tech firms, though regulators recently softened tone on supporting tech's economic role