China quietly withdraws bill restricting gaming industry

In a surprising move, China has quietly removed a draft law that shook the gaming industry from its official website, just weeks after it wiped tens of billions of dollars off the market value of giants like Tencent and NetEase, according to TechCrunch .

The link to the draft regulation was no longer accessible as of the morning of January 23, according to a report by Haitong Securities. Shares of Tencent and NetEase also rose sharply on the news. “This may indicate further changes in the new measures,” Haitong analysts said in a note published by S&P Global Market Intelligence.

Shares of Tencent and NetEase also surged after the bill was removed.

In addition to withdrawing the draft, China also removed a key official involved in issuing the draft, surprising investors and gaming companies.

In recent weeks, following a worrying market crash involving gaming companies, Chinese media have reported that authorities may soon withdraw some proposed regulations for the country's gaming industry.

Last month, China's gaming regulator proposed new measures to curb excessive time and money spent on computer and smartphone games. The proposals include eliminating daily login rewards that can lead to addiction, as well as limiting in-game purchases to reduce 'burning' money.

The Chinese gaming community is closely watching the next developments and hopes that the government will find a way to balance between protecting players and promoting the healthy development of the gaming industry.

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