Chinese gaming and 'metaverse'-related shares skidded on Thursday, dragged down by an ongoing regulatory squeeze that has engulfed industries ranging from online platforms and entertainment to for-profit tutoring and real estate.
The decision to freeze new video game approvals was revealed at a Wednesday meeting between Chinese authorities and gaming firms including Tencent Holdings and NetEase, said the report citing unnamed sources briefed on the matter, adding that it was not clear how long the suspension would last.
Stocks in listed gaming companies had already been battered earlier in the day after state news agency Xinhua reported on the same meeting. Xinhua also said that companies were told to "resolutely curb incorrect tendencies such as focusing 'only on money' and 'only on traffic', and change rules and gameplay designs that induce players to indulge"."The Chinese government is taking a very serious approach to online gaming and these reported restrictions are a step ahead on that program," Kingston Securities executive director Dickie Wong told Reuters.
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