HONG KONG, Jan 2 (Reuters) - China removed an official at a government body overseeing its press and publications regulator, five sources who were briefed on the matter said, days after Chinese gaming stocks were hit by proposed rules to curb spending on video games.
Feng Shixin was removed last week from his position as head of the publishing unit of the Communist Party’s Publicity Department, the sources said. The department oversees the National Press and Publication Administration (NPPA) which in turn regulates China’s vast video games sector.
China’s State Council Information Office, which handles media queries on behalf of the Chinese government, including on personnel matters, did not immediately respond to a request for comment and Reuters was unable to obtain Feng’s contact details to reach him for comment.
The five sources said Feng’s removal was linked to rules the NPPA announced last month that sent stocks in the world’s largest video games sector, including industry giant Tencent (0700.HK), plunging.
Literally, $80 billion dollars, that’s how much Chinese gaming companies lost in stock value when it was announced. Given Xi is trying to stoke confidence in the economy I can bet he was pissed this was done now of all times. Kids gambling is a valuable market unfortunately.
Seems like someone with foreknowledge of the reversal could have made some money there, doesn’t it?