Chinese regulators announce rules curbing spending and rewards in video games, impacting market value and earnings. New draft rules ban reward features, set spending limits, and restrict incentive mechanisms. Tencent and NetEase stocks plummet due to potential impact. Tech investor Prosus also experiences a significant decline. Regulations aim to promote a healthy gaming industry, but market overreacts. Rules also include 60-day game approval processing and requirement for servers to be stored in China. 2022 was a difficult year for the Chinese gaming industry.