By Sherry QinChinese gaming stocks listed in Shanghai and Shenzhen rebounded after regulators softened their stance on the latest proposal to further tighten controls on online games. Hangzhou Electronic Soul Network Technology and Sichuan Xunyou Network Technology advanced as much as 6.5% and 8.7%, respectively. The rebound came after Chinese regulators approved 105 videogames on Monday amid efforts to ease concerns after tough new gaming rules proposed triggered massive losses. On Friday, Tencent's Hong Kong-listed shares dropped 12%, wiping out $46 billion in market value in response to the proposed gaming curbs. Citi analysts called Friday's selloff in gaming stocks an overreaction.

Source: Wall Street Journal December 26, 2023 06:25 UTC