China’s gaming industry has been gripped by a broader regulatory tightening across the technology sector. Regulators were increasingly concerned about gambling addiction in children. The approval of the first batch of games since July 2021 could indicate that headwinds in China’s gaming sector will ease.
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Chinese regulators have approved the first batch of video games for monetization since last July, ending a freeze that has hurt some of China’s biggest tech companies.
US-listed shares of NetEase, one of China’s biggest gaming companies, rose more than 4% in early trading Monday, while live-streaming companies Bilibili, Huya and DouYu were also up.
In China, companies need approval from regulators to monetize games. China’s National Press and Publication Administration approved 45 games on Monday. However, stocks from NetEase and gaming giant Tencent were not on the list.
Tencent and NetEase both declined to comment when contacted by CNBC.
But the approval may indicate a slightly more positive view of the gaming industry from regulators after months of headwinds from China’s tightening of regulations across the tech sector.
https://www.cnbc.com/2022/04/11/chinese-regulator-approves-new-games-after-freeze-gaming-stocks-rise.html Chinese regulator approves new games after freeze; Gaming stocks soar