China dimissed an official at a government organization responsible for its press and publications regulator, days after Chinese gaming shares crashed due to a proposed video game spending curb.

According to the sources, Feng Shixin was fired last week from his role as head of the Communist Party's Publicity Department's publishing division. The National Press and Publication Administration (NPPA), which in turn governs China's enormous video game industry, is under the department's supervision.

Reporters were unable to get in touch with Feng for comment, and the State Council Information Office in China, which responds to media inquiries on behalf of the Chinese government, including those regarding personnel matters, did not promptly reply to a request for comment.

According to the five sources, Feng's dismissal was related to regulations the NPPA unveiled last month, which caused stocks in the world's largest video game industry — including industry leader Tencent — to plummet.

The sources wished to remain anonymous because Feng's departure had not yet been formally announced by the authorities.

In recent years, Feng has spoken on behalf of the Chinese government at conferences about measures taken by the government to control the gaming sector, such as game approvals and the need for players to verify their genuine names. It was not possible for Reuters to find out how long he had held this position.

The planned actions of the NPPA, which aim to limit spending and the use of incentives that promote video game playing, caused concerns that the government was once again taking a harsh stance against the industry and caused the two largest gaming companies in China to lose almost $80 billion in market value.