The End of Chinese Gaming Stocks?
I find it curious that the PRC's General Administration of Press and Publication could announce that "Foreigners would be banned from operating online gaming within China through wholly foreign-owned investments, joint ventures or any other forms of co-operation with local companies" and that foreign-owned or JVs such as Shanda, Netease, and Changyou.com wouldn't see their stock prices budge.
Wouldn't these companies be worth a whole let less to American shareholders if said shareholders were banned from owning them.
Maybe this is my own paranoia, but generally when the Chinese government comes out against something, it's going to take that something down or exact considerations from said something (higher regulatory fees, for example). But this is curious, indeed. If you own any Chinese gaming stocks, I'd encourage you to tread carefully and start reading the Chinese business press.