China’s press and publications authority has granted approval for 105 new online games, signaling strong support for the gaming industry. This move comes in the wake of proposed restrictions that resulted in substantial losses for investors in major game development companies last week.
The National Press and Publication Administration, in a statement released on its WeChat social media account on Monday, highlighted that the approvals, endorsed by the Game Working Committee of China Music and Digital Association, represent positive signals aimed at fostering the prosperity and sustainable growth of the online gaming sector.
Notable titles, such as Tencent’s “Counter War: Future” and NetEase’s “Firefly Assault,” were among the approved games, indicating a positive turn for major players in the industry. The decision to greenlight new online games reflects a supportive stance from Chinese authorities after recent uncertainties cast a shadow on the gaming market. publications authority has granted
Draft guidelines for curbs on online gaming had caused share prices of video game makers like Tencent and Netease to plunge on Friday, causing losses of tens of billions of dollars and dragging Chinese benchmarks lower.
The administration’s guidelines for online games include a ban on providing incentives for daily log-ins or purchases. Additionally, restrictions will be imposed on the amount users can recharge, and warnings will be issued for “irrational consumption behavior.”
The impact of these guidelines was evident in the market performance of major gaming companies. On Friday, Netease’s Nasdaq-traded shares experienced a 16.1% decline, while its Hong Kong-traded shares plummeted by 25%. Tencent also saw a significant drop, closing 12% lower. Huya Inc., a smaller online games maker, registered a loss of 10.7% on the New York Stock Exchange. Collectively, these companies witnessed the erosion of tens of billions of dollars in market value.
Notably, Hong Kong’s market was closed on Monday due to the Christmas holiday, and share prices in Shanghai remained relatively flat. The market fluctuations underscore the sensitivity of gaming stocks to regulatory developments and policy changes within the industry.