Exclusive | Chinese video gaming official steps down after market rout linked to proposed rule changes, sources say

A significant Chinese official, Feng Shixin, who was instrumental in overseeing the country's video gaming industry, has resigned. This decision follows the proposal of new regulations last month that led to a massive loss in the value of Chinese gaming stocks. This information comes from sources who are familiar with the situation but wish to remain anonymous due to the sensitivity of the matter. Feng, a long-serving official, has vacated his position as the publication bureau chief at the Communist Party’s Central Propaganda Department.

Another source, who also requested anonymity, suggested that Feng's departure could indicate that China might reconsider some of the stringent restrictions proposed last month on consumer spending in video games. These proposed restrictions took the market by surprise due to their severity. The National Press and Publication Administration (NPPA), the agency responsible for regulating China's video gaming industry, has not yet responded to requests for comment.

Feng's resignation comes amidst Beijing's efforts to mitigate the damage caused by the NPPA’s disclosure of draft rules on December 23. These rules, aimed at curbing spending on video games, triggered a global sell-off of Chinese gaming stocks, including industry leaders such as Tencent Holdings and NetEase. The proposed rules, open for public feedback until January 22, would require video game developers to implement measures to cap user spending and prohibit “excessive” rewards for activities such as daily logins and additional consumer spending.