China is once again looking to impose tighter regulation on its video game market.
The country’s entertainment and content regulator, the National Printing and Publications Office, has published proposed legislation that would limit game companies in how they can incentivize players to enter their titles. This includes banning daily login rewards.
In addition, the bill requires game companies to locate server equipment in China, and also states that games must not contain state secrets or pose a threat to national security.
As a result of these proposed changes to the country’s gaming business, several well-known names such as Tencent and NetEase have seen their share prices rise sharply. The former saw a 12.4 percent drop, its biggest one-day drop, while the latter saw a 24 percent drop.
According to the FT, Tencent Vice President Viggo Zhang said the proposed law does not represent “any fundamental changes” to how the company operates.