China unveils new gaming curbs, sending tech stocks tumbling

China on Friday announced new plans to restrict the online gaming industry, sending shares in tech giants including Tencent tumbling and wiping tens of billions of dollars off their value.

New draft restrictions published online by the regulator are aimed at limiting in-game purchases and compulsive playing behaviour.

Following the news, Tencent tanked more than 15 percent in Hong Kong while rival Netease was down more than 30 percent.

Beijing first moved against the gaming sector in 2021 as part of a sprawling crackdown on big tech, including a strict cap on the amount of time children could spend playing online.

An end to a freeze in gaming licences had raised hopes that the focus on the industry had subsided.

But the draft regulations announced Friday would introduce limits on recharging in-game wallets and abolish features meant to increase gameplay time such as rewards for daily log-ins.

Pop-ups warning users of "irrational" playing behaviour would also have to be introduced.

The draft regulations also reiterate a ban on "forbidden online game content... that endangers national unity" and "endangers national security or harms national reputation and interests".

Tencent is the global leader in the sector in terms of revenue, dominating the Asian market and investing in game studios across the world.

Friday's news wiped around $54 billion off the company's share value, according to Bloomberg News.

The shockwaves were felt throughout Hong Kong's Hang Seng Index, which dived more than four percent.

It had been rallying with global markets on expectations the Federal Reserve will cut interest rates next year.

Gaming company XD shed around 15 percent, and other tech firms were also...