Asian Tech Press (Aug 30) -- Shares of Chinese gaming giant NetEase Inc (NTES: NASDAQ GS) plunged more than 7% after China's state-run Xinhua News Agency issued news that China has introduced stricter online gaming regulations to prevent minors from indulging in online games.

According to Xinhua, the National Press and Publication Administration (NPPA) recently issued the Notice on Further Stricter Management to Effectively Preventing Minors from Indulging in Online Games, which further tightens management measures against minors' excessive use and even addiction to online games.

The Notice requires to strictly limit the time of providing online game services to minors, and all online game enterprises can only provide one hour of services to minors from 8:00 pm to 9:00 pm daily on Fridays, Saturdays, Sundays and other public holidays, and no other time is allowed to provide online game services to minors in any form.

In addition, the Notice requires strict implementation of the requirement of real-name registration and login of online game user accounts, and no game services shall be provided to users without real-name registration and login in any form.

Affected by the news, NetEase stocks plunged in pre-market trading on Monday. As of press time, shares were down 7.29% at $86.00 per share.

In response, NetEase said the company has long acted actively around the protection of minors in the past, striving to create a green and healthy online environment for minors. Next, the company will strictly comply with the latest notices and requirements of the NPPA and actively implement them.