Chinese Gaming Stocks Surge post Sacking of Regulator

Chinese gaming stocks rose on Jan 3, above broader market weakness after Reuters reported that China had fired its gaming regulator. China's animation comic games index and CSI rose 3.1% in early trade, while the overall market fell 0.3%. China has removed Feng Shixin from the government agency that oversees media and publishing executives, days after Chinese gaming stocks were hit by proposed laws to curb spending on video games, according to a person briefed on the matter.

"The removal of the official aims to release goodwill to the public and demonstrated its (China's) stance of maintaining confidence in all walks of life," said Rukim Kuang, founder of Beijing-based Lens Consulting.

"It is expected that the proposed gaming draft rule will not be implemented in the short term."

Feng 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. The 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, plunging.