Chinese gaming giants Tencent and NetEase, saw their shares shed over $60 billion of value amid growing investor worries that Chinese regulators are preparing to increasingly tighten their hold on the world’s largest gaming industry, reports Caixin. Tencent shares extended losses late Thursday to finish 8.5% lower, its steepest drop since July. NetEase plummeted 11%.
Chinese regulators summoned industry executives to a meeting Wednesday and told them to break their “solitary focus” on profit and prevent minors from becoming addicted to games, according to the state-backed Xinhua News Agency.
Regulators also said China will slow approvals for all new online games, the South China Morning Post reported Thursday, amending an earlier report that there was a freeze on approvals.