Tencent, NetEase shares rebound after regulators vow to improve proposed rules (updated)

NetEase

27/12/2023 02:08

(Recasts and writes through)
    By Jason Xue and Casey Hall
       SHANGHAI, Dec 27 (Reuters) - Chinese online gaming giant
Tencent Holdings  0700.HK  saw its shares stage a mild rebound
on Wednesday, the first day of trade  after regulators vowed to
make improvements to proposed rules that had sent stock in
gaming companies plunging.
    Its Hong Kong-listed shares climbed 3% in morning trade
after a 12% tumble on Friday. Hong Kong markets were closed on
Monday and Tuesday for public holidays. 
    Rival NetEase  9999.HK  shot up 14% compared with a 25%
plunge on Friday, also helped by local media reports since
Monday that it is again in talks to partner with World of
Warcraft-maker Blizzard. The two companies abruptly parted ways
a year ago. 
    Earlier this month, Blizzard China, the company's Chinese
subsidiary, published a post on China's top micro-blogging site
Weibo, saying that it is in talks with publishing partners in
China to continue the game's service in the country.
    Chinese regulators announced on Friday a wide range of draft
 rules aimed at curbing spending and rewards that encourage
video games, sparking fears that regulators were once again
cracking down heavily on the sector.
    But after shares in gaming sector stocks plummeted, there
was an apparent softening in stance by China's video game
regulator - the National Press and Publication Administration -
which released a statement on Saturday saying the government
would further improve the proposed rules after "earnestly
studying" public views.
    And on Monday, the regulator approved new licenses for 105
domestic online games for December - a move some analysts said
"strongly demonstrated" that authorities remain supportive of
the development of online games.
    
    

 (Reporting by Jason Xue and Casey Hall; Editing by Edwina
Gibbs)
 ((Jason.Xue@thomsonreuters.com;))