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China Bans Foreign Investment in Online Game Companies

Authored by Mark Hefflinger on October 13, 2009 - 10:29am.
Shanghai - China has enacted a ban on foreign investment in the country's burgeoning online games industry, Reuters reports.

The new directive, issued by the country's General Administration of Press and Publication (GAPP), prohibits foreign companies from investing in Chinese online game firms through joint ventures, wholly-owned enterprises and cooperatives -- or even via technological support.

Chinese online game sales are expected to reach as much as $4 billion this year, according to GAPP.

It's unclear how the new directive will affect several of the largest Chinese online game providers, including Shanda and Changyou, which have received large foreign investments via listings on the Nasdaq in the U.S.

 

Related Links:
http://snipurl.com/shxo8 (Reuters)

Published in DMW Daily, October 13, 2009
tags: Games | Law | Policy | China | Shanda | Changyou |



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