Shares of Tencent and NetEase bounce back as Beijing seeks to quell fears of a new gaming crackdown

A set of draft rules released by Beijing on Friday blindsided investors, wiping out about $80 billion in value from the industry. The new measures from the National Press and Public Administration (NPPA), the industry regulator, are aimed at curbing the amount of time and money players spend on online games. Some of the changes proposed include barring developers from rewarding players for daily log-ins, and providing incentives for people to livestream games.

But developments since the weekend suggest Beijing may be trying to temper fears of another crackdown.

The NPPA said in a post on Saturday that it would “carefully study” public views in response to the draft rules, particularly around Articles 17 and 18. Those two articles focus on online duels between players, daily log-in rewards, and spending limits. Regulators will accept feedback on the new rules until Jan. 22, 2024, the post said.

And on Monday, the regulator approved 105 new online games, including those from major companies like Tencent and NetEase. The approvals demonstrate that the relevant departments “actively support” the development of the online games industry, according to a post from the Game Publishing Committee of Chinese Audio-Visual and Digital Publishing Association on WeChat. The association also pointed to steady approval rates this year which have given industry players a “reassurance”.

State-backed media outlets also tried to calm nerves through articles explaining the rationale behind the rules. One said the latest measures are meant to extend…