Chinese regulators the State Administration of Radio and Television and the Ministry of Culture and Tourism have suspended game license approvals, affecting Chinese tech giants such as Tencent Holdings Ltd., Bloomberg News reported, citing sources.
The National Radio and Television Administration, which is part of the State Administration of Radio and Television, has not granted licenses for about four months, while the Ministry of Culture and Tourism has implemented more stringent game registration procedures, according to the sources.
Regulators are reportedly concerned about violence and gambling presented in some of the games.
Tencent currently has pending approvals for games "PlayerUnknown's Battlegrounds" and "Fortnite." The company recently removed "Monster Hunter: World" from its WeGame platform after Chinese authorities received complaints related to its content.
Tencent has lost about $150 billion in market value since January, according to the Bloomberg News report. Meanwhile, other smaller game developers in China are facing financial difficulties as they are unable to release new game titles.
The halt in approvals follow the overhaul of China's government structure in March, alongside its plans to tighten media control.