(Yicai) Dec. 26 -- Giant Network Group, Perfect World and other Chinese game publishers announced stock repurchase schemes yesterday to help support their stock price after the country’s regulators said last week that they are considering imposing curbs on in-game spending, giving investors cold feet.

Giant Network will spend between CNY100 million (USD14 million) and CNY200 million of its own funds to buy back shares over the next 12 months for use in stock ownership incentives or employee stock ownership schemes to protect the rights and interests of its shareholders and hike investor confidence, the Shanghai-based game developer said yesterday.

Perfect World will also repurchase between CNY100 million and CNY200 million of shares over the next year that will be used in stock ownership incentives or employee stock ownership schemes, owner and Chairman Chi Yufeng said the same day.

Giant Network will repurchase shares at a price of up to CNY20 (USD2.8) apiece, almost double today’s closing price of CNY11.06 (USD1.55), it added.

Giant Network’s share price [SHE:002558] dipped 1.3 percent today and has plunged 20 percent over the past three trading days. Perfect World ended down 1.8 percent at CNY11.20. The stock has lost 16 percent of its value since Dec. 22.

Other gaming firms, including 37 Interactive Entertainment Network Technology Group, G-Bits Network Technology and Electronic Soul Network Technology, also announced similar share buyback schemes yesterday.

Excessive spending on games should be restricted and online games will be required to set spending limits, according to a draft released by the National Press and Publication Administration on Dec. 22, which is open to feedback from the public.

Any in-game incentives that encourage high spending, such as rewards for daily logins as well as first-time and multiple purchases, will be banned, as will the sale of props at exorbitant prices, it added. Shares in Chinese gaming firms plunged that day.

The new rule aims to promote the healthy development of the online game industry and the regulator will modify the draft after taking into serious consideration the opinions of the public, companies and game players, the administration said in response to market reactions on Dec. 23.

Editor: Kim Taylor