NetEase sinks 20%, Tencent 11% after China proposes new rules for online gaming companies

Shares of NetEase Inc. and Tencent Holdings Inc. fell sharply on Friday after Chinese authorities announced draft rules to crack down on spending and rewards in online gaming. In a statement, China’s National Press and Publication Administration, the top gaming regulator, proposed curbs on excessive spending on games by consumers, and bans on rewards from multiple logins and pop-up rules that would warn users against overspending on such games.The draft rules also said content of any games should be prohibi ...