China’s gaming industry became caught up in broader regulatory tightening across the technology sector. Regulators became increasingly concerned about gaming addiction amongst children. The approval of the first batch of games since July 2021 could indicate China’s gaming sector headwinds will start to subside.
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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 largest technology firms.
U.S.-listed shares of NetEase, one of China’s biggest gaming companies, were up more than 4% in early trade Monday while live-streaming companies Bilibili, Huya and DouYu also jumped.
In China, companies need approval from regulators to monetize games. China’s National Press and Publication Administration gave the approval to 45 games on Monday. Titles from NetEase and gaming giant Tencent were not on the list, however.
Tencent and NetEase declined to comment when contacted by CNBC.
But the approval potentially indicates a slightly more favorable view from regulators toward the gaming industry after months of headwinds amid regulatory tightening in China across the technology sector.
Source: CNBC