Associated Press
[Source: AP]
China’s press and publications authority has approved 105 new online games, saying it fully supports the industry after proposed curbs caused massive losses last week for investors in major games makers.
The National Press and Publication Administration issued a statement on its WeChat social media account Monday saying the approvals by the Game Working Committee of China Music and Digital Association were “positive signals that support the prosperity and healthy development of the online game industry.”
Tencent’s “Counter War: Future” and NetEase’s “Firefly Assault” were among games approved.
Draft guidelines for curbs on online gaming had caused share prices of video game makers like Tencent and Netease to plunge on Friday, causing losses of tens of billions of dollars and dragging Chinese benchmarks lower.
The administration’s guidelines said online games would be banned from offering incentives for daily log-ins or purchases. Other restrictions include limiting how much users can recharge and issuing warnings for “irrational consumption behavior.”
On Friday, Netease’s Nasdaq-traded shares fell 16.1% while it’s Hong Kong-traded shares sank 25%. Tencent’s closed 12% lower. Huya Inc., a smaller online games maker, lost 10.7% on the New York Stock Exchange. Overall, the companies lost tens of billions of dollars in market value.
Hong Kong’s market was closed Monday for the Christmas holiday. Share prices in Shanghai were flat.
