Feng Shixin, a key official in China's gaming regulatory body, has been removed from his position following backlash over proposed gaming regulations. These regulations had previously led to a significant drop in market value for major gaming companies like Tencent Holdings Ltd and NetEase Inc, with nearly $80 billion wiped off their combined market value. The stringent regulations, aimed at curbing spending and gaming incentives, were particularly challenging for smaller developers and the industry as a whole, which saw a contraction in revenue for the first time in 2022. However, following the market slump, Chinese regulators have indicated a potential revision of the rules, leading to a recovery in the shares of the affected companies.