China approved 105 online video games on Monday amid efforts to ease concerns after regulators proposed tougher new rules on gaming. Video game plays such as NTES stock bounced Tuesday after tumbling Friday.
On Friday, China's gaming regulator, the National Press and Public Administration, proposed new restrictions on how long minors can play video games, in-game spending limits and more. The proposed rules raised concerns about return to sweeping crackdowns on the gaming industry and perhaps beyond.
NetEase plunged 16.1% in Friday's U.S. stock market trading. Tencent Holdings dived 12.4% to a 52-week low. Bilibili slumped 4.9% after hitting a 52-week low intraday. Livestreaming specialist Huya tumbled 10.7%.
E-commerce giants Alibaba, JD.com and Pinduoduo fell more than 1% on Friday, on concerns of a broader regulatory push.
Over the weekend, the NPPA said it would listen to feedback from video game makers and players. The 105 video games approved Monday, which included titles from NetEase and Tencent, was the highest in 17 months.
Hong Kong's Hang Seng was closed for Christmas and also on Tuesday.
On Tuesday, NTES stock rose 5.2% and Tencent 3.45%. BILI stock advanced 2%. Huya rebounded 3.7%. BABA stock, JD.com and PDD climbed less than 1%.
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