Giant Network Group tumbled by the 10 per cent exchange-imposed daily limit to 11.21 yuan and 37 Interactive Entertainment Network Technology Group also slumped by that much to 18.52 yuan. Peer Kingnet Network plunged by 10 per cent to 9.85 yuan.
China’s National Press and Publication Administration, the watchdog for the online gaming sector, said over the weekend that it would seek feedback from companies and players to improve and revise a draft ruling, which was issued on Friday and included items that would curb spending by users.
The industry’s biggest player, Tencent Holdings, and NetEase had a combined US$63 billion in market value wiped out in a single day on Friday.
Meanwhile, the administration said on Monday that it had approved 105 games, including those operated by Tencent and NetEase.
“The regulator is meant to promote the prosperous and healthy development of the industry rather than rein in it,” said Zhang Liangwei, an analyst at Soochow Securities in Shanghai.
“It’s a draft ruling and not finalised. Investors should look out for progress on feedback from those involved.”
Fresh curbs on the gaming industry risk adding to Chinese stocks’ woes this year – the market is among the world’s worst-performing major markets globally in 2023. The Shanghai Composite has lost 5.7 per cent this year and the CSI 300 has dropped 14 per cent, on concerns about the sustainability of China’s post-Covid-19 economic recovery, which has been battered by a downturn in the property market and fiscal stress on local governments.
Most major Asian markets remains closed, except Japan. While the Nikkei 225 climbed 0.3 per cent, Taiwan’s Taiex index added 0.1 per cent.