Well-known Chinese companies fell due to the actions of officials. Looks like they've taken them on now
Recently there has been an “explosion” in the gaming industry. The fact is that in China, the regulator published a draft document “Measures for the management of online games” (rules for video games). which are actively used to monetize Chinese games, for example, rewards for daily login and the mechanics of randomly releasing items (gacha/loot boxes) were mentioned. The market quickly reacted to the news and shares of Chinese companies fell.
Now Reuters journalists have received information from five sources that an official has been fired in China. Feng Shixin served as head of the publishing division of the Propaganda Department of the CPC Central Committee (Communist Party's Publicity Department).
As explained, the department oversees the National Press and Publication Administration (NPPA), which, in turn, regulates the Chinese video game market.
Sources claim that the dismissal is related to this recent incident – the publication of new rules.
After the regulator announced that the rules would be “adjusted”, the fall in stock prices was partially recouped.