(Yicai Global) Feb. 22 -- Tencent Holdings rebutted speculation that Chinese regulators intend to take new measures to rein in online gaming after an online rumor sank the shares of the gaming giant and other technology firms.

Zhang Jun, Tencent's head of public relations, used his WeChat account yesterday to dismiss as rumor the post by a user on the financial information platform Xueqiu.

The widely circulated post said new regulations may be introduced that would disrupt Shenzhen-based Tencent’s business. The account, with the user name Crazy Panda 233, has since been suspended. But it sparked further rumors that watchdogs will stop issuing gaming licenses and ban games that have ‘wasteland’ content such as apocalyptic and post-apocalyptic worlds, anarchism and boy’s love.

Investors, already spooked by China’s clampdown on the internet sector, began to sell. Tencent [HKG: 0700] slumped 5.2 percent yesterday and edged 0.1 percent lower today to close at HKD444.80 (USD57).

Capital market regulation will continue to be strengthened, Pang Ming, chief economist at Huaxing Securities Hong Kong, told Yicai Global, leading to weak market confidence, a slower-than-expected turnaround in investor sentiment, and high sensitivity to negative information.

The National Press and Publication Administration is still receiving game publishers’ license applications as normal, a staff member said yesterday, in response to a question by Sina Tech. If there any developments, notifications will be posted on the administrator’s website, it added.

But the NPPA has not issued a single online gaming license since July 22 last year. There were 755 licenses approved in 2021, 54 percent of the number issued in 2020 and 48 percent of that in 2019.

Editors: Zhang Yushuo, Kim Taylor