Tencent shares tank as China restricts gaming incentives

(Sharecast News) - Shares in Tencent and other Chinese gaming developers tumbled on Friday after the government unveiled new measures to restrict incentives used by companies to encourage in-game spending and more frequent gameplay. The National Press and Publication Administrations said it was setting spending limits, and banning the use of incentives for players logging in every day or spending several days gaming in a row.

The government had already set time limits on video games for minors in 2021 in response to fears about growing gaming addition, as well as temporarily pausing new game approvals for a limited time.

Shenzhen-based Tencent, the world's biggest video game developer, finished down over 12% in Hong Kong, having fallen as much as 16.8%, while Netease dropped 25%.

The draft proposals by the NPPA will be subject to public comment in late-January.