Newscasts - China gaming stocks jump on report watchdog ousted

NetEase

03/01/2024 08:53

Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_ukvak2id&referenceId=tag:reuters.com,2024:newsml_RW947503012024RP1_930&pageId=Newscasts
Source: 'Reuters - Business videos'

Description: Chinese gaming stocks rose on Wednesday to outperform a weak
broader market, after Reuters reported China removed a gaming regulatory
official. Julian Satterthwaite reports.
Short Link: https://refini.tv/3H7WZJ3

Video Transcript:

Shares in China’s big gaming firms jumped on Wednesday. That followed
reports that Beijing had removed a top regulator responsible for a crackdown
on the sector. Tencent stock gained around 1% by afternoon, with rival NetEase
up by a similar amount. That contrasts with a fall of around 1% for Hong
Kong’s benchmark Hang Seng Index. Reuters sources say watchdog Feng
Shixin was removed from his post last week. He had overseen regulation of the
country’s vast gaming sector. Five sources say his departure was linked
to rules set out in December, which were meant to curb spending and the use of
rewards to encourage game playing. The measures sparked a plunge in related
stocks, wiping nearly $80 billion off the value of China’s top two gaming
firms. Days later, authorities struck a more conciliatory tone, saying they
would study how to improve the proposals. Now analysts say Feng’s exit
looks like a goodwill gesture to the sector. However, there was no comment on
the report from the Chinese government, and Reuters wasn’t able to
contact Feng for a response. Beijing cracked down heavily on its gaming sector
in 2021, setting strict playtime limits for under 18s. The latest proposals
revived concern over aggressive regulation, just when authorities had been
trying to revive private sector investment in the country