The recent upheaval in China’s gaming stocks had the Chinese Regulatory Body for ever-anything-tech – The National Press and Publication Administration (NPPA) – on their feet. Due to the proposed regulations that saw an estimated $80 billion erased from the market value of the two largest video-game corporations, Mr. Feng Shixinx, Head of the Publishing Unit of the Communist Party’s Publicity Department, was discarded from his post, triggered by Reuters’ report.
After being labeled, by a UBS analyst, as particularly daunting for the smaller game developers, the NPPA’s strict regulations drew widespread criticism in mid-December last year, setting a potentially threatening scene in the gaming sector. In consequence, the two behemoths of the Chinese gaming industry – Tencent Holdings Ltd. (TCEHY) and NetEase Inc. ( RHGLY ). – both saw a significant decrease in the value of their respective stocks.
But cataclysmic situations can lead to brink-rescuing. NPPA department hinted at potential moderation of the blow, and saw a rise in both the industries again. For once, crane regulations didn’t celebrate the Chinese stake who almost lost it and just as lucrative opportunities loomed ahead for them. 2022 has been bona fide tumult and subsequent gloom for the Chinese gaming arena – experiencing its first dip in total revenue since inception.
