HomeTechnologyTencent Valuation Slumps By $43 Billion as China Proposes New Gaming Rules

Tencent Valuation Slumps By $43 Billion as China Proposes New Gaming Rules

Tencent Holdings lost about $43.5 billion of its value after China’s National Press and Publication Administration presented draft guidelines for new rules aimed at limiting gaming and video game spending. Shares in Tencent, NetEase, and Bilibili all slumped following the submission.

Falling 12.4%, Tencent stocks closed at HK$274; its lowest level since November 2022. The Hang Seng Index closed 1.7% lower this week following the major hit taken by gaming stocks. Brian Tycangco, an analyst at Stansberry Research, stated that the recent regulatory decision is highly threatening to Tencent and the industry at large.

“I’m confident we’ll get more clarity on these new rules in the coming days and weeks. But investors don’t want to wait around for the dust to settle. Better coordination between industry and regulators will benefit everyone in the future,” Tycangco observed.

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