Tencent Holdings (0700) is cutting the marketing budget of its gaming division as the business suffers through regulatory disruptions and a slowdown in the economy, according to an internal memo seen by .
China's largest gaming company is asking marketing executives to control their cash flow and curtail spending to "endure the hard times together," according to the letter sent to executives a few days ago. Games that don't yet have government licenses, for example, will have to return their unspent money to the group.
China's gaming industry, which generates more than US$30 billion (HK$234 billion) of revenue, has been hammered this year after regulators froze the approval process for new games. The move has thrown Tencent into disarray, leading to its first profit drop in at least a decade and the evaporation more than US$200 billion of market value since a January peak