China is no stranger to implementing laws to protect children from gaming addiction. In 2021, China introduced a law that restricts gaming time to be limited to three hours per week for people under the age of 18. In December 2023, another law was proposed to remove gaming practices incentivizing daily login rewards. However, this newly proposed law has caused stocks to drop for major companies like Tencent (16%) and NetEase (25%) — which may be the primary reason the government has eased up on the recently proposed direction.
