Prosus shares tumble on Tencent plunge after China cracks down on gaming

In a surprising move, China has introduced stringent measures targeting online gaming, erasing approximately $54 billion in Tencent Holdings Ltd.'s value. The draft rules, disclosed by Beijing's gaming regulator, aim to curtail spending and content, prohibiting practices like rewarding frequent log-ins and player duels. This unexpected crackdown suggests renewed scrutiny of the world's largest mobile gaming sector. Amid concerns of gaming addiction and societal issues, these regulations may force companies to revamp monetisation models, impacting China's booming gaming market projected to grow 14% to ¥302.9 billion ($42.4 billion) in 2023.

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Tencent Sheds $54 Billion as China Unveils Latest Gaming Curbs

By Zheping Huang

China unveiled a raft of new measures to rein in spending and content in online games, signaling the start of another industry crackdown that wiped out roughly $54 billion of Tencent Holdings Ltd.'s value.

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