China's Surprise Gaming Rules Cause Billions in Losses for Tech Giants Tencent and NetEase

Shares of Chinese tech giants Tencent and NetEase plunged in Hong Kong after Beijing introduced new regulations to restrict online spending in the gaming industry. The drop wiped billions off their collective market value. The proposed rules include setting spending limits, banning in-game measures that induce high spending, prohibiting virtual goods trading at high prices, and banning large tips to livestreaming players. China's crackdown on the gaming industry aims to combat gaming addiction among young people and curb the power of tech companies.