Government cracking down on adult dating sites

Since 2020, China’s Communist Party has waged a campaign against technology stocks in the private sector, which it regarded as amassing too much power and expanding recklessly. Shanghai Junnfu Private Fund Management said, “The government gaming curb measures will hurt gaming companies’ earnings, but the more important concern is people are worrying that more measures targeting the sector will come, just like what the government did to the education sector in the past.” Also, ABRDN said that “previous clampdowns were more on minors, which didn’t matter as much for monetization, but these new restrictions seem broad-based across all users.”

Some analysts are concerned the new rules will significantly reduce game developers' monetization flexibility. The draft released by regulators last Friday encompassed caps on the amount each player can spend within a game, a ban on rewards for frequent long-ins, and forced player duels.