Chinese regulator approves new games after freeze; gaming stocks rise
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China’s gambling industry was affected by broader technology sector regulatory tightening. The growing problem of gaming addiction in children became a concern to regulators. China’s headwinds in the gaming sector could start to recede with approval of the first games after July 2021.
AFP – Getty Images| AFP | Getty Images
Chinese regulators approve the first set of video games that can be monetized since July. This ends a long-standing freeze which has damaged some of China’s most important technology firms.
U.S.-listed stocks NetEaseOne of China’s largest gaming companies was up over 4% Monday morning, while live streaming companies were down a little Bilibili, Huya DouYuAlso, jumped.
China’s regulators require approval for companies to make games monetizable. China’s National Press and Publication Administration granted approval for 45 games on Monday. Titles from NetEase & gaming giant TencentHowever, they were not listed.
CNBC reached out to Tencent and NetEase for comment.
The approval could indicate a more positive view by regulators towards the gaming sector after several months of challenges in the face to the industry due to tighter regulations in China.
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