China announces rules to reduce spending on video games

BChinese regulators announced on Friday a wide range of rules aimed at curbing spending and rewards that encourage video games, dealing a blow to the world’s biggest games market, which returned to growth this year.

The new rules, which will effectively set spending limits for online games, sparked panic among investors, wiping off nearly $80 billion in market value from China’s two biggest gaming companies, as investors sought to gauge the potential impact on earnings and more restrictions in the offing.