This is another big setback for tech giants Tencent and NetEase: China is planning new rules for gaming.

Chinese officials are planning to put a lot of limits on online games. This has scared investors and caused two of the country's biggest gaming moguls to lose a total of $10.2 billion in value in just one day.

A set of draft rules that would limit spending on online games were released by the National Press and Publication Administration on Friday.

This came as a surprise. Users would only be able to put a certain amount of money into their gaming accounts, and online prizes that are meant to get people to play games would not be allowed.

When the plans were made public online, shares in Tencent, a Chinese company that makes games and social networks, fell as much as 16.8% in Hong Kong.

 In the Asian financial hub, shares of competitor NetEase fell as much as 28%.

Cui Chenyu, an analyst at the research and advisory company Omdia in Shanghai, says, "If the rules are really put into place, the effect on revenues will be huge." "One pretty important marketing tool is the reward system."

As for Charlie Chai, an analyst at the research company 86 Research in Shanghai, he says the draft rules are pretty much done and don't expect any big changes.

Authorities want to limit how much all users can spend, which is likely to have an effect on everything from making money to keeping users interested. Online, officials say they are asking people what they think until January 22, 2024.

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